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Secured loans are backed—or secured—by collateral that your lender can repossess for those who default. Collateral may be the money in the personal savings account or, in the case of the car loan or mortgage loan, the auto or home you’re funding, respectively.
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Do not forget cosigners. Some lenders help you include things like a cosigner on the loan. A cosigner claims to pay for the loan in the event you default.