Difference between secured and unsecured loan

Bjornki

Hi,

I'm new to this country and I have no idea what the difference is between a secured and an unsecured loan. Could somebody explain this to me?

Thanks

Bjorn

frugglewump

A secured loan is one that is 'secured' against something - e.g. your house or car. If you do not pay back this loan the lender may seize the item and sell it to get their money back. This is a *very* basic explanation - things are usually slightly more complicated if it is secured against your house.

An unsecured loan basically isn't one of the above. If you do not pay it back the lender can take you to court for a CCJ, but it's harder for them to force you to sell anything.

aliwatts

Hi Frugglewump,

not sure if this is the right place to ask you this but how do you get £8104 at 0% interest?

Thanks

frugglewump

Replied via PM, so as not to hijack the thread.