What is the difference between an unsecured and secured loan?
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I'm thinking of getting a loan but then the question comes up as to whether I want a secured or unsecured loan? WHats the difference and which ine is more advisable to take?
What is the difference between an unsecured and secured loan?Secured loan is a loan secured against something, eg your house, in case you can't pay it back. Unsecured is better if you can get it.
What is the difference between an unsecured and secured loan?I think an unsecured loan usually has a higher of interest but if you default they cannot repossess your house. A secured loan is secured against your property.
People who do not own property usually have to have an unsecured loan.
What is the difference between an unsecured and secured loan?Secured - lower rate, but if you miss enough payments, they will reposses the object against which you secure the loan (usually a house).
Unsecured - higher rate, but the loan is not secured against your house. Not sure exactly what happens if you miss too many payments, probably legal action or something.
What is the difference between an unsecured and secured loan?A secured loan is one that has some other property as collateral. For example, if you buy a car and offer your wife as collateral to secure the loan, if you do not make the payments the bank can come and take your wife.
An unsecured loan is better because there is no collateral required, but if you have a nagging wife a secured loan might be preferable.
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