A secured loan is backed by collateral, such as a car or house, which the lender can seize if the borrower fails to repay the loan. Common examples include mortgages and auto loans. An unsecured loan does not require collateral and is granted based on the borrower’s creditworthiness. Examples include personal loans and credit cards. Secured loans often have lower interest rates due to the reduced risk for the lender, whereas unsecured loans typically have higher interest rates.
Visit https://www.quickcashlending.com to learn more!