https://ttlc.intuit.com/community/taxes/discussion/can-someone-explain-a-secured-and-unsecured-loan-in-detail/01/610491#M247478 Thu, 06 Jun 2019 06:10:05 GMT willetta918 2019-06-06T06:10:05Z https://ttlc.intuit.com/community/taxes/discussion/can-someone-explain-a-secured-and-unsecured-loan-in-detail/01/610491#M247478 Thu, 06 Jun 2019 06:10:05 GMT https://ttlc.intuit.com/community/taxes/discussion/can-someone-explain-a-secured-and-unsecured-loan-in-detail/01/610491#M247478 willetta918 2019-06-06T06:10:05Z https://ttlc.intuit.com/community/taxes/discussion/the-main-difference-in-a-secured-loan-and-an-unsecured-lo/01/610498#M247482 <P>&nbsp;</P> <P>The main difference in a secured loan and an unsecured loan is whether or not you give collateral to the lender in exchange for the loan.</P> <P>When you talk to a lender about a secured loan, they will want something of value in exchange for lending you the money.&nbsp; For example, most mortgages are secured loans.&nbsp; If you get a mortgage on a house and you do not make the loan payments, then the lender will take the house instead.&nbsp; The house was the collateral that secured the loan in that example.</P> <P>For an unsecured loan, the lender is strictly relying on you to pay the loan back.&nbsp; There is nothing given for collateral.&nbsp; Many times, the interest rate for an unsecured loan will be higher because of the additional risk the lender is taking.&nbsp;</P> <P>&nbsp;</P> <P>[edited 3/27/2020 | 12:03 pm PST to correct typo]</P> Fri, 27 Mar 2020 19:03:29 GMT https://ttlc.intuit.com/community/taxes/discussion/the-main-difference-in-a-secured-loan-and-an-unsecured-lo/01/610498#M247482 AnnetteB 2020-03-27T19:03:29Z