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Secured vs. Unsecured Loans
When you’re shopping around for loans and lines of credit, you’ll see a lot about the rates you’ll pay. And something else you might notice – and want to understand – is if the loan is secured or not.
"Secured" Loans Means Collateral
When you take out a secured loan, you’re asked to put up collateral. It’s extra incentive for you to pay it back, and extra assurance to the lender that you will.
Collateral can be your house for home loans, or your car for auto loans. It can even be funds in your savings account for a Share Secured Loan.
Both Types Can Help Build Your Credit
There’s another benefit to secured and unsecured loans, besides getting access to funds. Making all your payments on time can help build or re-build your credit score (which you can check anytime in your Affinity Plus mobile banking app or online banking).
