Secured loans

Many lenders offer both secured and unsecured loans. There is a big difference.

Here’s how it works:

For a secured loan, the lender requires you to provide an asset as a guarantee. This could be a home or a car. If you don’t repay the loan, the lender is going to take that ‘security’ away from you.

For an unsecured loan, there is no guarantee. But generally, you’ll be paying a higher interest rate.