Types of Secured Loans

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Here are several examples of secured loans:

  1. Mortgage Loans: When obtaining a mortgage to finance a home, you’re essentially securing a loan. The property being purchased serves as collateral, meaning if you fail to repay, the bank can repossess the house.
  2. Vehicle Loans: Similar to a mortgage, when you borrow money to purchase a vehicle, the vehicle itself acts as collateral. If you default on payments, the lender can seize the vehicle.
  3. Secured Credit Cards: Obtaining a secured credit card involves essentially taking out a secured loan, as you’re using your bank account as collateral. Failure to make payments can result in the bank accessing funds directly from your account.
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CashLoanPH Changed status to publish 05/04/2024