A: A secured loan is backed by collateral, such as a house or car. If you default on the loan, the lender can seize the collateral to recoup their losses. Unsecured loans, on the other hand, are not backed by collateral and typically come with higher interest rates due to the increased risk for the lender.
Q: Can I get a loan with bad credit?
A: While it may be more challenging to secure a loan with bad credit, it is not impossible. There are lenders who specialize in providing loans to borrowers with less-than-perfect credit. However, you may have to pay a higher interest rate or provide a co-signer to qualify.
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