Most loan types fall into one of two loan categories – secured loans and unsecured loans. To clarify we’ve defined each type of loan below.
What is a Secured Loan?
Secured loans are loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien is placed on the item. The finance company or bank will hold the deed or title, for which it has been used for collateral, until it has been paid in full, including interest and all applicable fees.
As the term implies, a secured loan means you are pledging something of value as an assurance that your loan will be repaid according to the agreed terms and conditions. It’s important to remember, if you are unable to repay a secured loan, the lender has recourse to the collateral you have pledged and may be able to sell it to pay off the loan.
What are examples of secured loans?
- Home Equity Line of Credit
- Auto Loan (New and Used)
- Boat Loan
- Recreational Vehicle Loan
What is an Unsecured Loan?
Unsecured loans are loans that are approved without the need for collateral. They include things like credit card purchases, education loans, or personal (signature) loans. Lenders take more of a risk by making such a loan, with no property or assets to recover in case of default. If you have been turned down for unsecured credit, you may still be able to obtain secured loans, as long as you have something of value or if the item you wish to purchase can be used as collateral.
When you apply for a loan that is unsecured, the lender believes that you can repay the loan on the basis of your financial resources.
What are examples of unsecured loans?
- Credit Cards
- Personal (Signature) Loans (note that they can be secured depending on the financial institution and the individual’s financial status)
- Personal Lines of Credit
- Student Loans (note that tax returns can be garnished to repay delinquent student loans)
- Some Home Improvement Loans
Apply for a secured or unsecured personal loan
If you are currently in need of an unsecured personal loan, contact your local Mariner Finance branch today to learn more about the different loans we offer. A member of our knowledgeable staff will be more than happy to answer any questions you have and to help you find the perfect loan that meets your needs.
†We offer personal loans from $1,000 to $25,000, with loans terms from 12 to 60 months. Minimum and maximum amounts dependent on an applicant’s state of residence and the underwriting of the loan. Loans between $1,500 and $15,000 may be funded online. Loans greater than $15,000 or less than $1,500 are funded through our branch network. Specific interest rates and fees are determined as permitted under applicable state law and depend upon loan amount, term, and the applicant’s ability to meet our credit criteria, including, but not limited to, credit history, income, debt payment obligations, and other factors such as availability of collateral. Not all rates and loan amounts are available in all states. Additional fees may apply to some loan offers; some state required and/or permitted fees may be treated as prepaid finance charges. Any such charges shall be in addition to the loan amount requested and/or approved and shall be fully disclosed to the applicant on his/her loan agreement. Not all applicants will qualify for the lowest rates or larger loan amounts, which may require a first lien on a motor vehicle not more than ten years old titled in the applicant’s name with valid insurance. Our loan by phone and online closing process requires a compatible mobile or computer device on which you can access your email and electronic documents. Not all loan types are eligible for loan by phone or online loan closing.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. As a result, under our customer identification program, we must ask for your name, street address, mailing address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
*The process uses a “soft” credit inquiry to determine whether a loan offer is available, which does not impact your credit score. If you continue with the application process online and accept a loan offer, or are referred to a branch and continue your application there, we will pull your credit report and credit score again using a “hard” credit inquiry. This “hard” credit inquiry may impact your credit score.