A secured loan is a loan that is secured by cash or material that is worth the same amount of, or more than, the size of the loan.

People that have less than perfect credit often take out secured loans. If you have bad credit, then this type of loan can help you on your way to reestablishing your credit rating. However, you can expect that the interest rate attached to your loan will be higher than loans that do not require security.

Your credit rating is an indispensable tool for your finances. The higher your credit rating, the better off you are, and can be, financially. In the case of an emergency, you may need to take out a loan. Chances are that you did not see the emergency coming and perhaps were not financially prepared for such an occurrence. It is nothing to be ashamed of, it happens to many people. However, if you have a poor credit rating, it may be nearly impossible to get a loan to cover the cost of the emergency.

This is when a secured loan comes in