Secured loan is something that you take out puttng someting as collateral.

I've come across these terms before but I don't really know the difference between the two. Could anyone describe with examples? Thank you!

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Secured loan is something that you take out puttng someting as collateral. For instance, mortgage (your house as collateral) or a car loan (keeping your car as collateral). If you default on a secured loan, you run the risk of loosing the collatreal.

Unsecured loans are those loans that are extended to you without any collateral. For example, credit cards.


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