By | July 16, 2023

7 Secured Loans From Banks, Online Lenders, and Credit Unions in the USA


Secured loans provide borrowers with an opportunity to obtain financing by leveraging their assets as collateral. These loans offer lower interest rates and higher borrowing limits compared to unsecured loans. In the United States, borrowers can access secured loans from various financial institutions, including banks, online lenders, and credit unions. In this article, we will explore seven secured loan options available in the USA and discuss their features, advantages, and considerations. Whether you’re looking to fund a home renovation, consolidate debt, or start a business, these secured loan options can provide the financial support you need.

  1. Home Equity Loans

Home equity loans are secured loans that allow homeowners to borrow against the equity they have built in their property. The loan amount is typically based on the difference between the home’s market value and the remaining mortgage balance. Home equity loans usually come with fixed interest rates and fixed repayment terms, making it easier for borrowers to plan their finances.

  1. Mortgage Loans

Mortgage loans are secured loans specifically designed for property purchases. These loans are typically long-term commitments that enable borrowers to finance the purchase of a home or investment property. The property itself serves as collateral, allowing lenders to offer competitive interest rates. Mortgage loans come in various forms, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), and government-backed loans like FHA loans and VA loans.

  1. Auto Loans

Auto loans are secured loans used to finance the purchase of a vehicle. The vehicle acts as collateral, reducing the risk for lenders and resulting in favorable interest rates for borrowers. Auto loans can be obtained from banks, credit unions, and online lenders. Additionally, dealerships often offer in-house financing options. When considering an auto loan, borrowers should compare interest rates, loan terms, and repayment options to find the most suitable option for their needs.

  1. Secured Personal Loans

Secured personal loans are loans that require collateral, such as a savings account, certificate of deposit (CD), or other valuable assets. These loans can be obtained from banks, credit unions, and online lenders. The interest rates and loan terms will vary depending on the lender and the value of the collateral. Secured personal loans are often used for debt consolidation, home improvements, or major purchases.

  1. Secured Credit Cards

Secured credit cards offer individuals with limited or poor credit histories an opportunity to rebuild their credit. These cards require a cash deposit that serves as collateral and sets the credit limit. As the cardholder makes regular payments and demonstrates responsible credit behavior, their credit score can improve over time. Secured credit cards are usually offered by banks and credit unions and can eventually be upgraded to unsecured credit cards.

  1. Savings-Secured Loans

Savings-secured loans are an option for individuals who want to borrow against their savings account or CD. These loans are typically provided by banks and credit unions and offer lower interest rates compared to unsecured personal loans. By using their savings as collateral, borrowers can access funds without depleting their account balance. It’s important to note that the funds used as collateral are temporarily frozen until the loan is repaid.

  1. Secured Business Loans

Entrepreneurs and small business owners can access secured business loans to finance their ventures. These loans require collateral, such as business assets, inventory, or accounts receivable. Secured business loans can be obtained from banks, credit unions, and online lenders. The loan amount, interest rates, and terms depend on factors such as the borrower’s creditworthiness, business revenue, and the value of the collateral. These loans can be used for various business purposes, including equipment purchases, expansion, or working capital.


Secured loans provide borrowers with an opportunity to access financing by leveraging their assets as collateral. Whether you’re a homeowner, car buyer, or entrepreneur, securing a loan can offer advantages such as lower interest rates, higher borrowing limits, and improved credit opportunities. It is important to carefully consider the terms and conditions of each loan option and evaluate your financial situation before making a decision. By exploring the secured loan options available from banks, online lenders, and credit unions in the USA, you can make an informed choice that meets your specific needs and goals.

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