Loans with collateral, also called secured loans, require you to put down a valuable item such as jewelry to secure the loan. The bank can seize this item if you default, reducing their risk. So, these loans tend to offer lower rates, larger loan amounts, and longer terms. And better yet, some don’t require you to have a good credit score. Personal loans with collateral are widely available at various locations. This article will cover three of the most common places to find them:

1. Banks

Banks are one of the main sources of loans with collateral. To get a secured loan from a bank, you can start by shopping around online to get prequalified. This lets you see terms you’re likely to qualify for without credit-damaging hard inquiries.

When you find a good potential offer, you can go into the bank and bring your collateral. You’ll provide information about your income and employment, and you may undergo a credit check. The bank will also appraise the collateral to determine how much to offer you. If approved, you can receive funding within a couple days, if not that same day.

2. Online lenders

These days, online lenders make it possible to apply for a secured loan and get the funding without leaving home. The process is much like an in-person loan but from the comfort of your couch. You can shop around with online lenders and get prequalified, then start applying with the one that offers terms that work for your financial situation and needs.

You’ll provide similar information as with the bank. For the collateral, you may need to have it appraised. With title loans, for instance, the lender appraises your vehicle and may ask for proof of income and employment. Then, they’ll offer you a loan worth 25% to 50% of the car’s appraised value. This may or may not involve leaving home, depending on the lender. Many online lenders offer same-day approval and funding, allowing you to get a loan fast.

3. Pawn shops

Pawn shops let you get a quick secured loan with nearly any item you own. To get a loan, you’ll bring your collateral into the pawn shop for appraisal. The pawn broker will then offer you a loan amount and terms based on their appraisal. With this type of loan, there are no credit checks.

If you accept the loan offer, you’ll leave the item with the pawn shop, then get your loan and a claim ticket to claim your item upon repayment. You’ll usually have 30 days to repay the loan plus finance charges. If you can’t repay, you lose legal possession of your collateral. There won’t be any credit score damages or collections agencies to deal with.

The bottom line

Secured loans are typically easier to get than unsecured loans, making them a good potential option for borrowers with poor credit or who are working on improving their finances. Banks offer a more traditional experience, whereas online lenders let you get a loan without leaving home. Pawn loans don’t require credit checks and can work for individuals with a valuable item they’re willing to use as collateral. Whichever option you choose, make sure you shop around to find great rates and terms that are in alignment with your financial needs. This will help you keep interest costs down and avoid defaulting while getting the money you need.