The common definition of a secured loan is that it is endorsed by some form of collateral. If the borrower fails to repay the loan then the lender may take hold of the collateral and sell it to repay the loan. An auto or home loan is an example of a secured loan.

There are many reasons why you may choose a secured loan; one is that a secured loan is suitable when you are trying to raise a large amount of cash for either home improvements, the purchase of a new car, or maybe you are experiencing difficulty getting an unsecured loan due to a poor credit history. Lenders can be more forgiving when it comes to secured loans due to the collateral you put up for the loan thus, making a secured loan possible when you have been denied for an unsecured loan in the past.

What are the qualifications for a secured loan?

You do not have to hold the deed on your home in order to qualify for a secured loan. If you have a mortgage, you use the equity that you have built up as collateral. With a secured loan, you can borrow an amount from