Secured loan
A loan backed by collateral the lender can seize on default. Auto loans, mortgages, and HELOCs are secured. APRs are lower than for unsecured loans.
Full definition
A secured loan is backed by collateral, an asset the lender can repossess or foreclose on if the borrower defaults. Auto loans (car as collateral), mortgages (home as collateral), HELOCs, and pawn loans are common secured loans. Because the lender's downside risk is limited by the collateral's value, secured loans carry lower APRs than unsecured loans for the same borrower.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Personal loanAn unsecured installment loan that can be used for almost any personal purpose. The most flexible mainstream U.S. consumer-loan product.
- Unsecured loanA loan that doesn't require collateral. The lender relies on your credit and income to underwrite. Most personal loans are unsecured.
- HELOC (Home Equity Line of Credit)A revolving line of credit secured by your home equity. APRs are typically lower than personal loans, but the home is collateral.
- Credit unionA member-owned, not-for-profit financial cooperative. Often offers lower personal-loan APRs than banks for the same credit profile.
- Online lenderA lender that originates and services loans entirely online. Decisions in minutes; funding as fast as the next business day.
- Marketplace lenderA platform that matches borrowers with multiple lenders from a single application, so you can compare offers without applying separately.
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