The Difference Between Secured and Unsecured Loans

Some may swear by a cash-only lifestyle. However, the truth is that many of us rely on credit for life’s significant expenses. When you need fast cash, you may need to decide between a secured or unsecured loan. The first step to becoming a smart borrower involves understanding the finer details of your loan. Luckily, our team at Heights Finance is here to help break it down for you.

Secured Loans

In a nutshell, secured loans require a piece of collateral. Your house, car, or even stock can be used to back up a loan. Because the lender requires collateral, secured loans are easier to qualify for, offer longer repayment terms and lower interest rates. They may also have higher borrowing limits. Some types of secured loans include mortgages, auto loans, home equity loans and credit lines.

Unsecured Loans

Contrarily, unsecured loans do not require collateral. Basically, the lender accepts your promise to pay them back after a specified period of time. With unsecured loans, interest rates tend to be a bit higher. These loans can be a great option for smaller amounts of money with quicker turnaround times.

Do Your Research

Looking for the perfect loan to fit your expenses? Be sure to learn the ins and outs of all your options. Depending on which company you go with, loans can be useful for accomplishing your personal goals. The more you know about how loans work, the easier it will be to manage your debt.

Aim High with Heights

At Heights Finance, we offer both secured and unsecured loans. We aim to be as flexible as possible when it comes to personal loans. After all, you’re in the driver’s seat of your financial destiny… We’re just here to help! Have a question about which loan is right for you? Don’t hesitate to reach out. Our friendly Team Members would be happy to address any concerns you may have. To get in touch, simply give us a call or contact us online.