When people cannot qualify for an unsecured personal loan, people opt for a secured loan. Sometimes it’s more beneficial to choose a secured loan, that way you can easily get approved when trying to take out a loan. Since you don’t have any collateral as a guarantee that you will pay back the loan, it’s harder to apply for an unsecured loan. 

Secured loans are also called collateral loans as they are backed by the loaner’s asset. This asset acts as a collateral that the lender can take from you when you can no longer pay for your loan. So what can you actually use as a collateral for a secured loan plan?

Here are some assets you might have that could be accepted as a collateral:

A House

If you own a property, then you’re good to go. A home or a real estate property is one of the most common assets used as a collateral by people. For instance, mortgages are used as loans secured by the property. That’s why a lender can take possession of a mortgaged property who has defaulted on a mortgage. But the mortgage isn’t the only secured loan that people can use as a collateral – home equity loan is a type of personal loan secured by the home’s equity.

A Car

A car is another usual type of secured loan collateral. About every car loans that are used to purchase a car are secured by the vehicle’s value. But if you own a car, vehicle, or even a boat, you can use that as a collateral for a secured cash loan.

A Savings Account

If you are an existing customer at a bank you want to loan a cash with, the bank may offer you a savings-secured or certificate secured loans. This allows you to keep your liquid cash in a deposit account, usually a savings account or certificate of deposit, while also getting out a cash to fund something you need. The best thing about this loan is that borrowers can frequently get interest in their deposits while using it as a collateral for a secured loan.


Investments and stocks are also assets that can be used as a collateral. Investments that are used as loans are often called securities-based loans or stock-based loans. These are often offered by private banks (especially if you have investments in this company) or brokerages. These are the same with other collateral loans. The debtor’s investments or stock holdings are used as collateral against the loan. Most of the time, the bank will extend credit up to the full amount of the investment’s value.

Future Paychecks

Bet you didn’t know you can use your future income to secure a cash advance loan. This means that you can borrow money in advance but you have to pay it back as soon as possible when you get your paycheck. This is also different from payday loans since this costs higher APRs, and it’s actually more costly to borrow.

When getting a secured loan make sure to prepare for the right collateral needed by your chosen bank company. It’s either you make it or break it, that’s why you have to keep in mind the acceptable asset that can be used as a collateral by different banks.

Taking out a cash loan can be a financial rescue or put you on a debt. Make smart decisions by comparing personal loans with GoBear today!