 TITLE: Secured vs. Unsecured Loans: What You Need to Know CONTENT: Which Type of Loan Is Right for You?\n------------------------------------\nAs a rule, secured loans will allow you to borrow more money at lower rates, but they put your property at risk if you fail to pay. Unsecured loans don't put your property at risk, but they can be more difficult to get and you'll generally pay more interest.\nSometimes the choice between a secured and an unsecured loan is not really yours to make. Mortgages and car loans are always secured, for example. If you don't yet have the credit history and score to get approved for an unsecured credit card, starting with a secured credit card can help you build credit.\nBut what if you're planning a minor bathroom remodel or another small project? Choosing in this case can be a bit more complicated. Should you use a home equity line of credit (HELOC) to pay for it or finance it using an unsecured personal loan? The best way to decide is to do the math: Compare interest rates, fees and repayment requirements. Keep in mind that while the HELOC is riskier, it also gives you the opportunity to borrow only what you need, unlike a personal loan where you take out a specific amount and have to pay back that amount regardless of whether you needed the whole thing for your remodel. That said, if savings are nominal, or you don't want to put up your house as collateral, a personal loan may be best. END