What is the difference between secured and unsecured credit loans?

March 6, 2010

in Secured loans

I am looking at gettting my first loan and i need to know what the difference is between a secured and an unsecured line of credit.

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{ 2 comments… read them below or add one }

gaza March 6, 2010 at 12:05 pm

A secured loan means you have to put up collateral to get the loan. Something worth more than the loan, such as, a free and clear auto, house, land, almost anything that has a value. You get the loan, and bank files a lien on your property until the loan is paid.

A unsecured loan is , your signature only.
No collateral, of course a signature loan
is the best. Your interest would be higher but not much.

All lot depends on your FICO score and
When your able to pay it back

borcho March 6, 2010 at 1:05 pm

Secured loans are backed by assets as collateral. Unsecured lines of credit are not backed by a collateral. You may prefer a secured line of credit to qualify for a larger credit line or better terms with your lender.

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