what is the difference between secured and usecured loans?

March 17, 2010

in Secured loans

Related Blogs

  • Share/Bookmark

Related posts:

  1. what is the difference between secured loans and unsecured loans?
  2. What is the difference between secured and unsecured credit loans?
  3. What is the difference between secured and unsecured personal loans?
  4. Secured loans?
  5. What exactly are unsecured and non secured loans? How are they different from secured loans?

{ 5 comments… read them below or add one }

Greg B March 17, 2010 at 8:51 am

One is secured and one isn’t

David M March 17, 2010 at 8:56 am

Secured loans are secured by an asset you own that they can take away from you if you don’t make your payments. Like a car loan or a mortgage. Unsecured loans are those backed by your personal promise to pay and usually have a higher interest rate attached to them.

v b March 17, 2010 at 9:55 am

Secured means the loan is legally tied to, say, your house or your car. If you fail to pay, they get the house.

Unsecured means it’s merely your word that you will repay. If you fail to pay, they are in the same boat as all other creditors.

mscarriem March 17, 2010 at 10:21 am

a secured loan is against a car , boat or house , this means you sign a note stating if you do not repay the money the bank lending you the money may reposses and take ownership of the property in which the loan was secured by, these loans usually have a pretty desent interest rate if you have good credit,

A unsecured loan is based solely on your credit and income and current debts. these loans are much harder to obtain and usually have a very high interest rate, excellent credit is ideal for these type of loans

Catlover March 17, 2010 at 10:57 am

A secured loan means that you have “collateral” to cover the loan in case you cannot pay it back. Example: Let’s say you have a car that is paid for and is worth $5,000 and you borrow $4,000 from the bank – your car is your collateral (it means you have something of value for the bank to take if you default on your loan.

An unsecured loan is just the opposite – you have no collateral or anything of value that the bank can take if you default on the loan.

With an unsecured loan, you will probably pay a higher interest rate and you must have good credit.

Hope this helps!

Leave a Comment

Previous post:

Next post: