Finance

The difference between unsecured and secured loans, and which option is right for you

Posted On: Jul 16, 2019   |   Posted By: Business Insider

The difference between unsecured and secured loans, and which option is right for you

Unsecured personal loans and credit cards don't require any collateral, but they may be more difficult to qualify for.
Secured loans and lines of credit, like a mortgage or auto loan , require you to pledge an asset as collateral, but they often come with looser requirements.
Before you borrow money, take time to explore both secured and unsecured options to see which might work best for your needs.
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Consumers who need to borrow money have a wide range of loan options to consider. However, all loans, lines of credit, and other financing methods fall into one of two categories - unsecured or secured debts.
While both secured and unsecured loans and lines of credit could help you reach your goals, there is one main factor that sets them apart. Where secured loans require collateral, unsecured financing methods don't require any collateral at all.
What is an unsecured loan?
Unsecured loans and financial products can come in many different forms, but the...

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