Car loans and home equity loans are the most common types of secured loans. An unsecured loan is made solely on your promise to repay. If the lender thinks you are a good risk, nothing but your signature is required. However, the lender may require a co-signer, who promises to repay if you don't. Since unsecured loans pose a bigger risk for lenders, they may have higher interest rates and stricter conditions.
Many installment loans have a fixed rate.
The interest rate and the monthly payments stay the same for the term, or length, of the loan. An adjustable-rate loan has a variable interest rate. When the rate changes, usually every six months or once a year, the monthly payment changes also. A personal line of credit is a type of revolving credit . It lets you write special checks for the amount you want to borrow, up to a limit set by the lender.