WHAT IS THE DIFFERENCE BETWEEN AN UNSECURED AND SECURED LOAN?

WHAT IS THE DIFFERENCE BETWEEN AN UNSECURED AND SECURED LOAN?

I'm intellection of effort a give but then the discourse comes up as to whether I poverty a secured or unsafe loan? WHats the disagreement and which ine is more best to take?

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Secured loan is a loan secured against something, eg your house, in case you can't pay it back. Unsecured is better if you can get it.

I think an unsecured loan usually has a higher of interest but if you default they cannot repossess your house. A secured loan is secured against your property.

People who do not own property usually have to have an unsecured loan.

Secured - lower rate, but if you miss enough payments, they will reposses the object against which you secure the loan (usually a house).

Unsecured - higher rate, but the loan is not secured against your house. Not sure exactly what happens if you miss too many payments, probably legal action or something.

source:http://studentsconsolidation.info/archives/124