What is the difference between an unsecured loan and a secured loan?
Which would be better for a personal loan under $10K
By
Posted on
10/20/09 Total Answers
2
Answers-
One is secured by collateral, one is not. Secured loans have lower rates.
Answer by :
Common Sense On Date
2009-10-20 18:40:15
a car or house loan is secured by the house or car. most credit cards are unsecured unless its a secured card meaning you have to deposit money into it before you can use it.
Answer by :
rebeli812 On Date
2009-10-20 18:42:47
A secured loan has collateral backing it - like a car or a house. If you don't pay back the loan the lender can seize the asset securing the loan.
An unsecured loan is basically your promise, not backed by any asset.
When you borrow money, you prefer to have an unsecured loan. But banks like secured loans and it's often hard to get an unsecured loan. But a loan under $10,000 stands a pretty good chance of being unsecured.
