# Secured vs Unsecured Loan

*Borrowing & Credit — Finicade finance glossary*

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.

**Related terms:** [Collateral](https://finicade.com/glossary/collateral), [Mortgage](https://finicade.com/glossary/mortgage), [Credit Card](https://finicade.com/glossary/credit-card)

Source: https://finicade.com/glossary/secured-vs-unsecured-loan