 TITLE: What Is Collateral? CONTENT: Types of Collateral\n-------------------\nThe type of secured loan you're applying for will dictate the collateral you can offer. Below are common consumer loans and collateral that can back them:\n*   **Mortgage**: On a mortgage, the home you're buying generally serves as the collateral. That's also the case if you take out a home equity loan or home equity line of credit, both known as second mortgages.\n*   **Auto loan**: The car you buy is the collateral on an auto loan.\n*   **Secured credit cards**: Getting a secured credit card is a smart credit-building strategy for those with low credit scores or short credit histories. When you apply, you'll pay a deposit that's generally the same as the line of credit you'll receive. That deposit functions as collateral, and you'll lose it if you don't pay off card purchases you make with the card on time.\n*   **Secured loans**: Personal loans can be used for all kinds of purposes, like home renovations or consolidating debt. Most are unsecured, meaning they're not backed by collateral. But some lenders offer secured loans, and you can typically use your car, savings account or home as collateral. But remember, you could lose it if you're unable to repay the loan. END