Secured Loans, also known as collateral loans, are by far the most standard type of loan available. Home and car loans are the most prevalent secured loans, and many people have at least one and often several of each. When buying furniture on credit, from either a department store or a furniture outlet, this is another form of a secured loan.

A secured loan is simply a loan where the consumer signs away the rights of something of equal value to the money received. A mortgage is a loan where the house itself is the collateral for the money loaned to purchase the home. Car loans work on the same principal; the car is the collateral for the loaned amount of the payments.

Other Types of Secured Loans

Furniture outlets and rent to own businesses offer merchandise using the secured loan model. As are boats, motorcycles, ATV