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Source: MarketWatch.com
A secured personal loan is backed, or “secured,” by a piece of collateral.
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Source: MarketWatch.com
Secured personal loans require collateral like a car, home, or savings account that the lender can claim if you default on the loan.
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Source: MarketWatch.com
Common secured loans include auto loans, mortgages, and home equity loans, all backed by valuable assets as collateral.
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Source: MarketWatch.com
Secured loans typically offer lower interest rates than unsecured loans due to reduced risk for lenders.
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Source: MarketWatch.com
If you have poor credit, securing the loan with collateral increases your chances of approval.
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Source: MarketWatch.com
Lenders may offer larger loan amounts with secured loans compared to unsecured ones, thanks to the collateral.
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Source: MarketWatch.com
If you fail to repay a secured loan, the lender can seize your valuable asset, such as your car or home.
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Source: MarketWatch.com
Secured loans offer a solution for individuals with poor credit by offering lower rates and more lenient terms.
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Source: MarketWatch.com
Besides cars or homes, some lenders accept savings or investment accounts as collateral for secured loans.
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Source: MarketWatch.com