Secured v. Unsecured Loans

Regardless of the loan in question, every loan can be divided into two broad categories – secured and unsecured loans. Whether you talk about logbook loans or payday loans, based on the criteria, all loans can be classified as either of the two. Here, we help you differentiate between these two types of loans.

Secured loan refers to a loan which requires you to pledge something as collateral. The criteria does not define any specific asset that you must pledge, as it varies from one loan to another. For instance, logbook loans require you to put your car as collateral, while with homeowner’s loan, you are pledging your house. Either way, such loans where the agreement involves presence of a collateral is called a secured loan, as by pledging your asset as collateral, you are in a way securing the loan. These loans come with relatively lower costs, since securing your loan brings down the risk associated with lending you money.

On the contrary, there are quite a lot of those loans which are not secured by any collateral. Here, you are free from any term requiring you to own a car or a house, in order to get access to the loan. If you meet the criteria the loan requires you to fulfil, you can get access to your funds without any need of handing over your car or house’s documents. Take example of a payday loan or a personal loan. These loans are readily available loans, which do not ask of you any sort of collateral. Here, the absence of a security means that the risk is higher and thus, such loans tend to have relatively higher interest rates. However, our aim to arrange the cheapest, most ideal deal for you and thus, even with our unsecured loans, the interest rates are modest to say the least.

At Wild Trout Fisher Finance, we are dedicated to getting you the best of both the types, so that it you who makes the choice as to what you want. Whether or not you are comfortable with having a collateral in the agreement, we always have something that would be of your liking. From our homeowner’s loans to our personal loans, we have something for just about everyone. Need more information? Browse through our website or just simply let us know what you have on your mind.