Unsecured loan
A loan that doesn't require collateral. The lender relies on your credit and income to underwrite. Most personal loans are unsecured.
Full definition
An unsecured loan is one that doesn't require collateral. If the borrower defaults, the lender cannot repossess a specific asset; they can pursue collection or sue for the balance, but recovery is harder. Because the lender takes more risk, unsecured loans carry higher APRs than secured equivalents. Most personal loans, credit cards, and student loans are unsecured.
- 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.
- Secured loanA loan backed by collateral the lender can seize on default. Auto loans, mortgages, and HELOCs are secured. APRs are lower than for unsecured loans.
- 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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