What is the difference

Star978

What is a secured loan and what is a unsecured loan

cymruchris

Star978 said:

What is a secured loan and what is a unsecured loan

Secured is tied to an asset - such as your house.

Unsecured isn't tied to anything.

Fail to pay the first one, and they take your asset away and sell it to get their money back.

Fail to pay the second one, and you'll likely end up with a CCJ, but not lose your asset.

There are rare exceptions though - where it's been known a charging order is placed against a property for an unsecured debt.

MattMattMattUK

Star978 said:

What is a secured loan and what is a unsecured loan

Unsecured loans are not secured against an asset, secured loans are secured an asset, usually property, sometimes a vehicle. It is generally much easier for a lender to seize or force the sale of an asset linked to a secured loan.

https://www.moneysavingexpert.com/loans/secured-loans-uk/

Star978

So is like a phone bill unsecure? 

Or a retail finance ? Is that secure or unsecure 

Brie

Star978 said:

So is like a phone bill unsecure? 

Or a retail finance ? Is that secure or unsecure 

Unsecure.  They can't seize the phone time you've used.  And while theoretically they could seize a sofa you bought with store credit or on a store card they are unlikely to ask the resale value isn't worth the fuss.