The main difference between secured and unsecured loans lies in collateral or the absence of collateral: Secured loans require collateral – a car or a house. Unsecured ones don’t require any guarantee
Secured loans usually offer larger lumps of money as lenders can take their collateral away in the case of the nonpayment. Furthermore, lenders offer lower rates, higher borrowing limits and longer repayment terms. This is more profitable than terms that unsecured loans lenders offer. Still, it becomes unprofitable in one way – when a borrower can’t provide collateral.
In such cases, people apply for unsecured loans that don’t need any material guarantee. As it was mentioned before, unsecured financial help doesn’t require collateral but offers less profitable terms. Still, when you have nothing to offer as a barter, unsecured help can become a good variant.
Types of secured loans: mortgage, home equity line of credit, auto or boat loan, recreational vehicle loan.
Types of the unsecured loans: credit cards, personal loans, student loans, certain home improvement loans.
It’s possible to apply for both kinds of loans to Personal Money Service. Though we aren’t direct lender, we cooperate with various financial providers.