Best secured personal loans and lenders of May 2026: Get lower rates by adding collateral

Article excerpt

Secured personal loans allow borrowers to pledge collateral, a car, savings account, or other asset, in exchange for lower interest rates than unsecured loans typically offer. Lenders including LendingClub, Upgrade, and others now compete for borrowers willing to take this route, with rates sometimes dropping by several percentage points. The trade-off is straightforward: default and the lender seizes your collateral. May 2026 data shows competitive terms for borrowers with good credit who can afford the risk, making secured loans an increasingly popular alternative to traditional bank lending.