Personal Secured Loan Collaterals

collateral The main difference between personal loans and personal secured loans is that the last one involves collateral. There are a few items you can use as collateral in this case and you must remember that all these items will tell that you are a serious person who wants to repay the loan on time. You can use a variety of items as collateral but the most common are:

1. Vehicle – It is a popular item put as collateral especially against personal secured loans. Even if the cars are less valuable compared with houses, more and more people use them as collateral. Of course, not any car can be used as collateral. Luxury cars, antique or classic cars are the best options here because of their high value.

2. Home – Since homes are the most expensive items we normally buy it is normal to be used as collateral in secured loans. You can use your home as collateral even if you have a mortgage, based on the equity you accumulated over the years. Homes were, are and probably will be the most popular collateral item.

3. Personal property – Land can also be put as collateral as long as you own it. Usually it is used as collateral when you buy it, but can be used in any other situation.

4. Stocks – if you have stocks, you can put all your stocks, or only a few, as equity for a secured loan. Since most people buy stocks it is normal to be able to use them as collateral.

5. Bonds – Like stocks, bond are accepted as collateral in secured loans because are considered solid investments. This form of IOU from government or company is widely accepted and you won’t have any problems having them accepted as collateral.

You can put any of these items as collateral for a secured loan and the decision is yours.

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