Secured vs Unsecured Personal Loans: Collateral, APRs & Approval Rules
Compare secured personal loans (backed by savings/vehicle collateral) vs unsecured personal loans. Understand approval odds, APR discounts, and risk.
By Sarah Jenkins, CFA
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Reviewed by David Vance, CFP
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5 min read
Secured vs Unsecured Loan Comparison Matrix
| Feature | Secured Personal Loan | Unsecured Personal Loan |
|---|---|---|
| Collateral Requirement | Required (Savings Account, Vehicle, CD) | None required (Signature only) |
| Average APR Range | Lower (5.99% – 14.99%) | Standard (7.99% – 35.99%) |
| Approval Probability | Higher (Lower risk for lender) | Strictly dependent on credit score & DTI |