What's the difference between a secured and an unsecured loan?

The primary difference is that a secured loan requires you to put up an asset as collateral to receive the funds. An unsecured loan does not require collateral.

Is a secured loan better for your credit score?

A secured loan isn't better or worse for your credit score than another type of loan. Applying for any loan may temporarily decrease your score, but by making regular, on-time repayments, you'll usually see a positive impact on your score in the long run.

Are secured loans hard to get?

Compared to unsecured loans, secured personal loans are typically easier to be approved for. This is because they are less risky for the lender - since they can claim your asset if you default on the loan.

What happens if I default on a secured personal loan?

If you end up defaulting on your loan, the lender can repossess and sell your asset to recoup their losses. This will also hurt your credit score. If you're struggling to repay you should speak to your lender and see if they have a financial hardship policy.