A Secured Loan is a loan whereby the borrow pledges some sort of asset that the creditor will take should the borrower be unable to return the money. Assets that are often pledged include a car or a property.

By taking out a secured loan the creditor is not at risk of losing out should the debt not be repaid; so financial risks for the creditor are minimal although there are potential risks for the borrower should they fail to be able to repay their debt, with the loss of their house one of the biggest risks.

Secured loans can be purchased from different banks, companies and even supermarkets. The loans are offered from companies such as Net Loans, Alliance & Leicester, Magic Loans, ASDA, DBS Finance, Virgin and Norton Finance.

It is also easy to purchase a secured loan from a variety of comparison sites. These sites offer some of the best deals that will suit the individual’s needs. Comparison sites that offer these types of loans include Money Supermarket, Money Expert and U Switch.

Another type of loan that is offered is an unsecured loan. With an unsecured loan you do not have to pledge any type of asset meaning that the borrower is not at as high of a risk should they not be able to repay the loan. An unsecured loan however is based solely upon the borrower’s credit rating so it is therefore more difficult to get an unsecured loan than it is to get a secured loan.