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What’s the difference between secured and unsecured loans?
A secured loan is secured by a valuable asset; an unsecured loan is not. For example, an auto loan is secured by the vehicle. If you don’t make your payments, the loan company takes the car and sells it to pay off the debt. With an unsecured loan, also called a personal loan, the loan company has a harder time recouping its money if you default. Return to Questions
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