Secured Loans

A secured loan is a loan that is taken out for whatever reason. There are no specifics for this type of loan. Secured loans can be used to purchase a house, a car, pay off debt, and rebuild credit, debt consolidation, even business start up and expansion. The thing about secured loans is the fact that they have something of value already in place to secure the money. In other words, collateral, in the case of a mortgage it is the house, a car loan it is the car. For personal emergency loans if you own your car you can use the title on it. If you own your home and have paid it off and need money you can re-mortgage your home. These types of loans can be credit based or they can be strictly collateral based. What is the value of what you are putting up?

Unsecured Loans

Unsecured loans are loans that have no collateral to back them up. These loans can be any type of loan and are usually credit based loans. When you go to purchase a home for the first time, or a car or you take out a loan to start a business or expand one and do not put something on the line in case you default on the loan this is considered an unsecured loan. It is the same as an unsecured credit card. An unsecured credit card does not require that you maintain a balance in order to use the card. A secured card is one where you are required to pay an amount into the card for example $500 and then you can use the card for up to that amount. Secured and unsecured loans work the same way. As with secured loans an unsecured loan can be anything, you wish to take a loan out for.

Second Chance Loans