Secured/Unsecured Auto Finance

Secured/Unsecured Auto Finance

You may qualify for an easily affordable Secured/Unsecured AUTO FINANCE loan but first we will tell you the difference between Secured and unsecured auto loans. A secured loan is a form of loan where you pledge your assets as security against the loan, assuring it will be repaid. Secured loans are usually the best way to obtain large amounts of money. Putting your home or other property on the line is a guarantee you will do everything in your power to repay the loan. The amount you can borrow under a secure loan will depend on the equity in the asset you are pledging.

The benefit of a secured loan is that the interest rates tend to be lower than an unsecured loan.

Examples of Secured Loans:

  • Mortgage
  • Home Equity Line of Credit
  • Auto Loan (New and Used)
  • Boat Loan
  • Recreational Vehicle Loan

An unsecured auto loan does not have any type of security other than your good name. And because it is not guaranteed by any type of property, these loans are bigger risks for lenders and, as such, typically have higher interest rates than secured loans. When you apply for a loan that is unsecured, the auto loan lender believes that you can repay the loan on the basis of your financial income. Conditions include the borrower's situation as well as general economic factors.

Examples of Unsecured Loans:

  • Credit Cards
  • Personal (Signature) Loans
  • Personal Lines of Credit
  • Student Loans (note that tax returns can be garnished to repay delinquent student loans)
  • Some Home Improvement Loans