Unsecured Credit Loan

Question: What is the difference between secured and unsecured credit loans?

(Posted by: dude 08 on 2009-03-24 21:44:27)

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.

Posted by: gaza on 2009-03-24, 22:06:10

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

Posted by: borcho on 2009-03-24, 23:16:52

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.