A secured personal loan is an installment loan, meaning you receive the money you borrow up front and then repay the loan through a set number of payments (“installments”). Generally, the interest rate and payment amount are fixed for the life of your loan, offering a predictable and manageable repayment schedule.
Similar to lines of credit, personal loans can be secured or unsecured. If you’re a homeowner, you likely want to secure your loan to take advantage of lower interest rates, larger loan amounts and longer repayment terms.
You may want to consider a secured personal loan if:
You want a lump sum payment to cover the cost of a home renovation, repair, furniture purchase etc.
You’ve missed debt payments in the past and are looking to rebuild your credit
You find it easier to manage a set repayment schedule with fixed payments