Secured vs. Unsecured Loans: Hereâs the Difference
Whether youâre trying to buy a home or looking to get a college degree, you may need to take out a loan to finance your goals. If youâre seeking out your first loan, know that borrowing money is a common practice and you donât need a degree in economics to understand it! Learning more about loans and the different types can help you make informed decisions and take control of your finances.
Loans take many forms but they all fall within two common categories: secured vs. unsecured loans. Whether youâre approved for either type of loan depends on your creditworthiness. Creditworthiness refers to how responsible you are at repaying debt and if it’s worthwhile or risky to grant you new credit. Itâs helpful to be aware of your credit prior to seeking out a loan so you know wher...