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Username: genryIOP
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Member since: Oct 27 2016
About genryIOP: Personal loans can be secured by an underlying asset, or unsecured like payday loans. To secure a loan against an asset, like a car or house, means that if you cannot repay the loan, the bank will seize the asset as payment. For this reason, the loan is less risky to the bank and so the interest rates are lower. For unsecured loans, there is no asset to seize, so if you cannot pay back the loan, you will have to default. This default risk is then reflected in the higher cost.
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