Reported 1 day ago
Secured loans are financial products backed by collateral, such as a car or home, which lenders can seize if payments are not made. These loans typically come with lower interest rates and higher borrowing limits compared to unsecured loans, making them easier to qualify for, especially for individuals with lower credit scores. However, the risk of losing the pledged asset if unable to repay is a significant consideration. Common types of secured loans include mortgages, auto loans, and personal loans, each with specific collateral requirements. It's essential to understand both the advantages and potential pitfalls before taking out a secured loan.
Source: YAHOO