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Otherwise referred to as a second mortgage loan or a householder loan, a secured personal loan is a type of loan taken against collateral, more often against a house or property that acts as the collateral. The opposite of a secured loan is an unsecured type of loan. A secured loan is basically meant to guarantee the lender that you will repay back the whole loan amount and any interest that it accrues along the way, failure to which you risk losing the property you have put up as security. Basically that is all there is to know about secured personal loans.

Because of this simple fact of risking losing your property, it is always advisable that you weigh all options available at your disposal before you start to apply for a secured personal loan. Nothing can be as hard as losing the property you have worked so hard for, the place that you have called your home for the whole of your life just because of a poor misguided mistake. A good alternative to secured personal loans could be a low interest MasterCard or an unsecured type of loan. These are good alternatives because you are not putting up anything as collateral although of course it will mean you will have to be content with a high rate of interest.

Many people however find it easier and better to opt for a secured personal loan than an unsecured one. Perhaps the main reason why this loan is very popular is because you can get it even with a bad credit history. Unlike an unsecured loan where you need to have an excellent credit rating in order to qualify for the loan, as long as the collateral is in good shape, and equals the amount of money that you plan to borrow, you can be guaranteed of getting approved of a secured personal loan with or without a good credit history.

The reason why it is easy to get a secured personal loan is because of the simple reason that there is collateral in place so the lender is not at a higher risk than when with an unsecured loan. If you do not have a property though, it can be very hard to get approved of a secured loan as most lenders today would want some tangible form of security. There are however lenders who are flexible enough to accept a vehicle as a form of security, but one thing that you should know is that regardless of the collateral, you will be getting the exact same amount of money that equals your collateral.