What is a secured loan?
Secured loan: A secured loan is backed by collateral, such as a car, savings or a home, that the lender can take if you do not repay as agreed.
Because the lender has collateral, a secured loan may be available on different terms than an unsecured loan. Home equity loans, HELOCs, auto loans and savings-secured loans are common examples.
The trade-off is risk: if you fall behind on payments, you could lose the asset that secures the loan.
When you compare offers
Weigh the risk to your collateral as well as the cost when you compare a secured loan with an unsecured one.
Related guides
- Personal Loans for Fair Credit: What to Know
What "fair credit" commonly means, what partners may look at beyond your score, and why personal loan rates and terms can vary so much.
- Home Equity Loan vs. HELOC: What to Compare
How a home equity loan differs from a HELOC, what it means that your home secures the debt, and the details worth comparing before you borrow against your equity.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.