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Category: Secured Loans

5 Assets you can use for collateral with a Secured Loan

If you are planning on getting a loan, you will need to have some type of valuable property you can put up as collateral. There are a number of things that you can use as collateral when getting this type of loan, and it is important that you know what they are. Those who are not able to put up any collateral will not be able to get a secured loan. Since there are so many benefits associated with these loans, you will definitely want to get this information.

1. House or Home Equity collateral loans

A lot of people who take out secured loans end up putting their homes up as collateral. Since a home is usually the most valuable thing a person owns, they use it as collateral when getting a large loan of some kind. Mortgage is not the only secured loan that you can use as collateral though. A second mortgage can be taken out on top of the first mortgage as a way to borrow against a home’s equity.

A home equity loan is a type of personal loan that is secured by the home’s equity. Because your home is one of your most crucial assets, you will need to protect it fiercely. It is important that you take the time to think about whether or not you really want to use your home as collateral, because doing so can be a fairly big risk to take.

2. Secured Car Loans

You will find that one of the most common forms of secured loan collateral is a car or some other type of vehicle. A vast majority of auto loans used to purchase a car are secured by the overall value of the vehicle. If you own a car, vehicle or even a boat, you can usually use that as collateral for a secured personal loan or even auto equity loan. You will need to make sure that you are getting a secured instalment loan from a reputable lender though.

3. Investments

You should keep in mind that your investments can also be used as collateral, as they are considered assets. Loans that use investments as collateral are called securities-based loans or stock-based loans. Depending on how much your investments are worth, you could use them as a form of collateral so you don’t have to risk losing your vehicle or home.

4. Savings-secured loans

There are some banks that will also offer savings-secured or certificate-secured loans. These are similar to bad credit options and are usually offered by banks and credit unions to existing customers. Savings-secured loans enable borrowers to keep their liquid cash in a deposit account, which is typically just a savings account or certificate of deposit. You will want to keep in mind that your deposit will accrue interest at a much lower rate than what you pay on the loan.

5. Future paychecks

It is sometimes possible to get a loan by using future paychecks as collateral. With these types of loans, you borrow money with the understanding that you will pay it back with a future paycheck. There is a big difference between legitimate cash advances with payday loans, though. A lot of lenders, banks and credit unions offer these cash advances to those who have a stable job with adequate income. This can be a decent option to consider for a number of reasons. If you want to fund a move or start new job, you will certainly want to look into this particular loan option.


There are so many different forms of collateral that you can use for a loan, but you will need to take the time to think about it before making a final decision. The more time you take to think about this, the better your chances are going to be of getting the loan you need with minimal risk and downside. If you are a homeowner, your house can definitely be put down as collateral, but you might want to think twice. The last thing you want is to lose your home, so you will therefore need to spend some time reviewing your collateral options so you can make the right choice.

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