What is a secured loan?
Secured loans are loans that are guaranteed by a specific asset that you own, such as your home or car. Whatever the asset, taking out a secured loan usually means you can borrow more money than you would otherwise have been able to. Potential lenders will see you as a more reliable borrower if you have an asset against which a loan can be secured. However, if a borrower consistently struggles to make repayments, and there’s no additional means for a loan to be repaid, the asset in question may be used to cover the outstanding debt by lenders as a last resort option. In keeping to your repayment schedule and not borrowing more than you can afford to repay, your assets are simply a means to taking out the money you need, and will be completely unaffected by your loan.