Secured loan
Mortgages & secured lendingA loan backed by an asset, such as a home or car.
Overview
Because the loan is secured, interest rates can be lower.
If you do not repay, the lender can repossess the asset.
Why it matters
- It can offer larger borrowing amounts.
- It carries higher risk if you miss payments.
- It may impact your credit profile if defaulted.
FAQs
Is a mortgage a secured loan?
Yes. Mortgages are secured against your property.
Does a secured loan affect my score?
Yes. Payment history and account status are reported to agencies.
Related terms
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