Monday, 26 October 2020

Best Lenders for Secured Loans

Best Lenders for Secured Loans
25 Feb
5:19
alternative lending
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Are you considering a secured loan? A secured loan is one that is backed by collateral. For instance, an auto loan is backed by the car you are purchasing. If you don’t make your auto loan payments, your lender can repossess the car.

Other common secured loans include home equity loans and home equity lines of credit. These secured loans use your house as collateral. If you are carrying high-interest, unsecured credit card debt, you can use the equity in your home to get a secured loan at a lower interest rate.

Secured loans are also available to put cash in your pocket without tapping into your reserves. If you have a savings account,stocks or other investments, a secured loan can be a great way to build your credit history or consolidate your debt while holding onto your money.

Getting a secured loan to consolidate debt is a good idea as long as you don’t continue to use the credit cards you just paid off. You can enjoy a lower interest rate and one monthly payment, which can help you keep more of the money you earn and improve your quality of life.

If you are strapped for cash, you may consider other types of secured loans. Beware of secured loans with high interest rates, such as title loans or payday loans. These loans give you money based on a car you own or your upcoming paycheck, but they are often predatory in nature.

Some secured loans allow you to use the cash for whatever you’d like, while other loans pay the money you borrowed directly to the seller of your home or vehicle.

If you need liquid cash fast and have assets in your name, a secured personal loan can help you get the money you need.

LendingTree

Personal loans can help you consolidate your debt, buy a vehicle and pay for home repairs, among many other things. If your credit is good, you can obtain a low-interest personal loan and avoid putting up collateral for a secured loan. Check out LendingTree’s personal loan tool to see if you qualify for a personal loan.

LendingTree is unique in that you may be able to compare up to five personal loan offers within minutes. Everything is done online and you may be pre-qualified by up to five different lenders without impacting your credit score.

LendingTree
APR

5.99%
To
35.99%

Credit Req.

Minimum 500 FICO

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

Varies

LendingTree is our parent company. LendingTree is unique in that you may be able to compare up to five personal loan offers within minutes. Everything is done online and you may be pre-qualified by lenders without impacting your credit score. LendingTree is not a lender.

LightStream

LightStream, an online consumer lending division of SunTrust Bank, offers secured loans for the purchase of new, pre-owned or classic vehicles, with a streamlined paperless loan process. Loans may even be processed on the same business day they are initiated.

LightStream offers personal loans for virtually any purpose, including new or used vehicles, home improvements, timeshare purchases, boat or aircraft purchases, or to pay off existing debt.

Most of LightStream’s loan programs are designed for people with good to excellent credit, but LightStream also offers secured loans for vehicles. These secured loans may have looser qualifications and slightly higher interest rates, with the same easy loan process.

LightStream
APR

3.99%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

LightStream is the online lending division of SunTrust Bank.Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

The fine print

LightStream does not list a minimum credit score, but it requires borrowers to fulfill multiple requirements. Those most likely to be approved are borrowers with a credit history of at least five years and a variety of revolving and installment loans on record, few missed payments, cash assets or a proven ability to save, and stable, sufficient income to pay the loan and their other debts.

LightStream offers loans from $5,000 to $100,000 for 24 to 144 months, but only loans of $25,000 and up are likely to get terms of 144 months. Interest rates vary from 3.99% to 16.99% when the borrower opts for automatic payments. Invoiced loans may be 0.50 percentage points higher.

Pros

  • If you qualify for a lower APR with another lender, LightStream will match that APR and reduce it by another 0.10 percentage points, resulting in even greater savings (terms may apply)
  • Paperless process makes it easy to apply for a loan
  • If you apply before 2:30 p.m. EST on any business day of the week, your loan may be approved the same day.
  • Loans are for fixed rates, which means your interest and payments won’t increase
  • No origination fee
  • A satisfaction guarantee means that if you receive the loan and are not happy with the process, LightStream will pay you $100

Cons

  • LightStream does not preapprove borrowers, meaning a hard pull is necessary
  • Secured loans are only available with specific products
  • Loans are not available for more than $100,000 or less than $5,000

If you are looking for a fast and easy loan process and are confident about your credit rating, LightStream could help you get the vehicle you want with a secured loan.

Wells Fargo

As one of the largest banks in the U.S., Wells Fargo provides a variety of loan products at low interest rates. With more than 5,000 branches and more than 13,000 ATMs in nearly every state, as well as online and phone banking options, Wells Fargo is easily accessible to consumers across the country.

Banking with Wells Fargo offers many benefits, including potentially lower interest rates on personal loans, to its customers. For customers who have a certificate of deposit (CD) or savings account with Wells Fargo, qualification could be quicker.

Wells Fargo Bank
APR

6.99%
To
23.99%

Credit Req.

Varies

Minimum Credit Score

Terms

12 to 60

months

Origination Fee

No origination fees

The fine print

Wells Fargo offers two savings secured loan products: a savings or CD secured personal loan and a savings or CD secured line of credit. CD/savings secured loans are available for terms up to 120 months, in amounts from $3,000 to $250,000. Wells Fargo does not disclose interest rates on its website, but says that secured loans often have lower interest rates than unsecured personal loans. Additionally, Wells Fargo customers can save 0.50% on their secured loan rate. A secured line of credit gives you access to a credit line starting at $5,000 (up to $250,000). There is a $25 annual fee for the line of credit.

Pros

  • You can get approved within hours and have your money by the next business day in many cases
  • You may avoid early withdrawal penalties on your CD with a CD secured loan
  • Money continues earning interest in your savings account.
  • You can enjoy the convenience of online banking and a large network of branches and ATMs

Cons

  • $75 loan origination fee
  • $25 annual fee for a secured line of credit
  • You must have a qualified Wells Fargo savings product to be approved

With a long-standing reputation and locations across the U.S., Wells Fargo provides convenient loan products for its customers. If you already have a Wells Fargo CD or savings account, a CD/savings secured loan is a good way to put your money to work for you.

OneMain Financial

OneMain Financial has been through a number of name changes since it was founded as Commercial Credit in 1912. Today, the financial institution serves more than 10 million customers with branches in 44 states.

OneMain Financial loans, even the secured ones, may have higher interest rates than you may find elsewhere. Its secured loan products, which require collateral such as a vehicle, may offer lower interest rates than unsecured loans.

OneMain Financial
APR

16.05%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

Varies

If you have a credit score below 600, OneMain Financial is one of the few lenders that you can use to get a personal loan.Read More


All loans subject to OneMain’s normal credit policies. Loan approval and actual loan terms depend on your ability to meet OneMain’s standard credit criteria (including credit history, income and debts) and the availability of collateral. Collateral requirements would include a first lien on a motor vehicle that meets our value requirements, titled in your name with valid insurance. Collateral offered must meet our criteria. The lowest annual percentage rate (APR) shown represents APRs for top 10% of loans closed. Maximum APR is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Residents in the following states are subject to the following loan size restrictions: Alabama residents: $2,100 minimum loan amount. California residents: $3,000 minimum loan amount. Florida residents: Unless you are a present customer, $8,000 maximum loan amount for unsecured loans. Georgia residents: Unless you are a present customer, $3,100 minimum loan amount. Iowa residents: Unless you are a present customer, $8,500 maximum loan amount for unsecured loans. Maine residents: Unless you are a present customer, $7,000 maximum loan amount for unsecured loans. Mississippi residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. North Carolina residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. New York residents: Unless you are a present customer, $20,000 maximum loan amount for unsecured loans. Ohio residents: $2,000 minimum loan amount. Texas residents: Unless you are a present customer, $8,000 maximum loan amount for unsecured loans. Virginia residents: $2,600 minimum loan amount. West Virginia residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

The fine print

OneMain Financial makes its lending decisions based on your credit history, income, expenses and the value of the collateral. APRs may range from 16.05% to 35.99%. Secured personal and auto loans are available between $1,500 and $30,000, with terms from 24 to 60 months.

Pros

  • Flexible payment options, including the ability to change your due date
  • Same-day or next-day decisions and funding

Cons

  • High interest rates
  • Must visit a branch to get your loan, even if you apply online
  • Soft Pull required to apply for a loan

Because of the high interest rates, OneMain Financial would not be a top choice for a personal loan for anyone with a good credit score. But if you are in a financial bind and need money for a vehicle or other necessary expense, OneMain Financial’s secured loans can help you get back on track financially.

First Tech Federal Credit Union

First Tech Federal Credit Union was founded in 1952. Founded by employees of Hewlett-Packard and Tektronix, it caters to anyone in the technology industry, including employees of Amazon, Microsoft and Hewlett-Packard.

But you don’t have to work for a tech giant to qualify. You can also join if you work for the state of Oregon or live or work in Lane County. Additionally, membership in the Computer History Museum or the Financial Fitness Association also qualifies you for membership in the credit union.

First Tech Federal Credit Union offers a variety of secured loans that can help you consolidate debt, pay for a major purchase or renovate your home.

The fine print

First Tech Federal Credit Union offers personal loans secured by stocks, CDs or your savings account. You can also use your stocks to back a revolving line of credit with a minimum limit of $25,000.

Interest rates start at 3.00% for a savings secured loan or a certificate secured loan. Borrow as little as $500, or up to $500,000 with a savings or certificate secured loan. Terms are for up to 96 months — or when the certificate matures.

Stock secured loans start at 4.75% APR, and stock secured lines of credit have starting APRs as low as 8.50%. Borrow as little as $25,000 and as much as $1,000,000 with a stock secured loan or line of credit, with terms up to 144 months for a loan. There are no application, origination, refinance or prepayment penalty fees.

Pros

  • Loan payments begin within the first three months for stock, certificate and savings secured loans
  • Receive a decision within 24 hours
  • Great way to build your credit
  • Online and mobile banking features let you make payments and access your money easily when you need it

Cons

  • Only available to First Tech Federal Credit Union members
  • You must have assets in the form of cash, CDs or stocks to get a secured loan

If you have cash reserves, stocks or certificates but no credit history, a secured loan from First Tech Credit Union can help you build your credit score.

A good credit score can help you take advantage of the best rewards credit cards, manage cash flow and help your money work harder for you. First Tech Federal Credit Union has a variety of secured loan products at low interest rates.

Digital Federal Credit Union

Founded in 1979, Digital Federal Credit Union is a tech-forward organization with a wide variety of checkings and savings accounts, as well as CDs, retirement accounts and more.

You can become a member if you:

  • Live in certain parts of Georgia or Massachusetts
  • Work for, are retired from or are related to someone who works for or is retired from one of the credit union’s partner employers
  • Are a relative of a member
  • Get a membership with one of its partner nonprofits

Digital Federal Credit Union offers a variety of loan products, including auto loans, home equity loans and a savings secured loan that lets you borrow against your savings account or CD.

The fine print

The credit union’s secured personal loans let you borrow as little as $200 up to as much as the amount in your savings account or certificate account for up to 120 months, with rates as low as 3.50% for a savings secured loan. Certificate-insured loans have terms up to 60 months, but they are not allowed to exceed the term of the certificate account. Interest rates start at the certificate rate plus 3.00%.

Pros

  • Apply conveniently online or by phone
  • Allows you to build or rebuild your credit
  • Low interest rates
  • Lets your savings work for you

Cons

  • Must be a member of the credit union
  • Rates for certificate secured loans change as certificate rates change

Good credit can help you get better rates on auto insurance and unsecured loans, be approved for a better luxury apartment to rent and take advantage of cash rewards credit cards.

If you have a savings or certificate account but no credit history, a savings secured loan from Digital Federal Credit Union with low interest rates can help you build your credit.

To determine our selection of lenders, we first reviewed those in MagnifyMoney’s personal loan marketplace that offered secured loans. We took APR, terms, origination fee and perks, such as the ability to change your due date, into account. Using those same factors, we then researched other lenders offering secured loans.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Dawn Allcot
Dawn Allcot |

Dawn Allcot is a writer at MagnifyMoney. You can email Dawn here

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Source: https://www.magnifymoney.com/blog/personal-loans/best-lenders-for-secured-loans/

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