Quick answer: A secured loan uses collateral; an unsecured loan does not. Collateral may reduce lender risk but can put the pledged asset at risk.
Key difference
Secured loans may use savings, a vehicle, or another asset as collateral. Unsecured loans rely more heavily on credit, income, and ability to repay.
Tradeoffs
Secured options may be easier to qualify for or less expensive in some cases, but missed payments can create asset-loss risk. Unsecured options avoid collateral but may cost more.
What to review
Compare APR, fees, collateral rules, repossession or asset-loss risk, and whether the payment fits your budget.
Methodology
This page is educational and uses illustrative examples. Borrow Your Loan does not publish unverified partner rates, approval odds, or lender requirements. A lender or partner controls any final offer, APR, fee, amount, repayment term, and funding decision.