What is the different between a secure loan and a unsecure loan?
Answers:
In a secure loan, you put up collateral to insure you pay off the loan.(house, car, etc)
In a non secured loan, it is basically a loan given to you on your good word.
A secure loan requires collateral. An unsecured loan does not.
When you get a secured loan, you have to place some sort of collateral upfront to get the loan, just in case you don't make the payments, they can seize the item you placed as the collateral. An unsecure loan is just that-you do not have to place anything as collateral.
A secure loan is one that you either have collateral for, such as a paid for vehicle, or a loan that you take out to purchase something that can be repossessed, such as a house or a car. And unsecure loan is a loan that you would take out to purchase a vacation, or pay off debts, therefore you may have a higher interest rate because there is no item that can be taken away if you default on your payments.
A secured loan is one that is backed by some type of collateral like a vehicle or property. A unsecured loan is not backed by anything except the borrowers promise to repay it.
Secured loan is something you took a loan out for..like home or car.
A unsecured loan is a loan like credit card where there is no collateral...or a signature loan.
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