Secured and unsecured loans: What are the key differences?
Date: Sun, 11/12/2006 - 06:20
could someone please tell me what is the differende between a secure and unsecured loan?
An unsecured loan is made on the basis of a borrowers credit his
An unsecured loan is made on the basis of a borrowers credit history and ability to repay and not on the requirement of pledging assets to the lender. A secured loan requires the borrower to pledge specific assets that become the property of the lender if a loan is defaulted.
Pay day loans are unsecured (except some could argue that they a
Pay day loans are unsecured (except some could argue that they are secured by a wage assignment...)
Your car loan is secured by the vehicle.
A "title loan" is a secured payday loan.
