2007-02-15 23:10:40 · 8 answers · asked by rogers_simon247 1 in Business & Finance ➔ Personal Finance
Secured is where a loan has to be secured against something tangible that belongs to you, so if you default on the loan they will take your item to help contribute to the debt.
This could be the car you bought with the loan, your house for a mortgage etc.
Unsecured is the opposite, they will just give it out to you without the security, That said, credit cards are unsecured but they will still chase you for money and get in th bailiffs if they get a chance.
Finance companies are well, not nice people are they!
2007-02-15 23:15:53 · answer #1 · answered by Anonymous · 1⤊ 0⤋
A secured loan is a loan that only homeowners/mortgage holders can take out. The loan is 'secured' against your home, so if you fall behind in payments, the lender can force the sale of your home to recoup their money. Typically, secured loans are higher than unsecured loans. Secured loans can be over longer periods of time too - the normal unscured loan lenght is about 1-7 years, whereas a secured loan can be up to 20 years.
The link below has some more information on the differences between unsecured and secured loans.
2007-02-15 23:17:52 · answer #2 · answered by Clem 3 · 0⤊ 0⤋
A secured loan is a loan where you put the tittle of your car or vehicle up. Or your House, something of value that is worth the money you are borrowing. An Unsecured loan is where the bank or financial institute loans you the money on your word alone.
2007-02-15 23:20:17 · answer #3 · answered by GRUMPY 7 · 0⤊ 0⤋
A secured loan is when they can take your house away from you if you can`t keep up the repayments.
An unsecured loan is usually a higher interest rate and if you don`t pay they can take you to court and you could end up bankrupt.
2007-02-16 00:35:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
With a secured load you put up collateral, such as a house and usually get lower interest because it's lower risk. Unsecured you put up nothing other than your credit rating, but usually pay more.
2007-02-15 23:15:07 · answer #5 · answered by Barbara Doll to you 7 · 0⤊ 0⤋
secured is against property and unsecured is against nothing. so if you don't pay a secured loan you can lose your house business etc.
2007-02-15 23:14:12 · answer #6 · answered by M1 5 · 0⤊ 0⤋
secured loan means you have collateral (a house) to back it up where as unsecured you don't
2007-02-15 23:14:08 · answer #7 · answered by Good Egg 6 · 0⤊ 0⤋
Cant say it any better than Jennifer W myself.
2007-02-16 02:47:06 · answer #8 · answered by Claire U.K 3 · 0⤊ 0⤋