Arcade › Glossary › Borrowing & Credit › Secured vs Unsecured Loan Borrowing & Credit Secured vs Unsecured Loan A secured loan is backed by collateral the lender can seize (a mortgage, a car loan); an unsecured one isn't (most credit cards). Less security for the lender means a higher rate for you. Want more than a definition? Learn it in Money Basics → Related terms Collateral Mortgage Credit Card ← Previous Revolving Credit Next → Simple Interest ← All Borrowing & Credit terms