Secured Personal Loans

Secured personal loans are backed by collateral or something valuable that you own, like a house or car. If you need quick funds to cover an expense, a secured personal loan might be a good option. Let’s take a closer look at secured personal loans and how they work.

What is a secured personal loan?

A secured personal loan is a type of personal loan that is tied to collateral or an item of value. If you fail to make your loan payments, the lender can seize your collateral. Since a secured loan poses less of a risk to lenders, it’s easier to qualify for. In addition, secured personal loans usually come with better rates and terms.

Types of secured personal loans

There are a variety of secured personal loans, including:

Title loans

A car title loan uses your vehicle as collateral. To take one out, most lenders require that you own your car. Upon approval for a title loan, you’ll give the lender your car title in exchange for a lump sum of cash. The amount you’ll receive will typically be worth 25% to 50% of your car’s value. You will be able to drive your car as you repay your title loan.


A mortgage is a loan that helps you purchase a home. The home itself serves as collateral so if you default on your payments, the lender may foreclose on your property and sell it. Many mortgages are long-term loans that are repaid over a period of 15, 20, or 30 years.

Home equity lines of credit (HELOCs)

With a home equity loan, you can access your home’s equity in a lump sum. Lenders will allow you to borrow up to 85% of your available equity and you can use the funds to cover just about anything. You’ll repay your loan through fixed monthly payments over a term of anywhere between 5 and 30 years.

Auto loans

When you get an auto loan, you borrow money from a lender to purchase a vehicle, which serves as your collateral. You’ll pay back the funds over monthly payments, typically ranging from 24 to 84 months. If you default on your car loan, the lender may repossess your vehicle.

Secured vs. unsecured personal loans

Unlike secured loans, unsecured loans do not require collateral. While these products can allow you to lock in financing without putting an asset on the line, they can also be more difficult to qualify for. This is because lenders don’t have collateral to protect themselves in the event of default. Unsecured loans also tend to have higher interest rates and may cost more in the long run.

How to apply for a secured personal loan

To apply for a title loan from Advance America, follow these simple steps:

  1. Fill out an application: If you own a vehicle, you can apply for a title loan in store or online within minutes, from the comfort of your own home.
  2. Visit an Advance America location: Once you apply, take your vehicle to a nearby Advance America location for a professional appraisal.
  3. Wait for a loan offer: After we appraise your vehicle, we’ll offer you a loan amount based on the value of your vehicle.
  4. Repay your title loan: Once approved for a title loan, you can leave with your car and cash in hand. You can keep driving your vehicle as you repay your loan.

Benefits of secured personal loans

Some of the most noteworthy perks of secured personal loans include:

Easy application process

You can apply for a secured personal loan quickly online or in person, depending on the lender. Be prepared to share basic personal information as well as details about your collateral.

Quick funds

Many lenders will distribute your money right away. You may receive the funds via direct deposit, prepaid card, or check the same day you apply or within 24 hours.

Good credit not needed

Even if you have poor or fair credit, you can get approved for a secured personal loan. Many lenders will look beyond your credit score and consider additional factors, like your collateral, income, and employment status, when making their approval decision.

Receive a larger loan amount

Since secured personal loans are less risky for lenders, you may get one with a larger loan amount. This is a huge plus if you have a big expense, like a car repair or medical bill.

Lower interest rates

Compared to unsecured personal loans, secured personal loans tend to come with better interest rates. A lower rate can lead to hundreds or even thousands of dollars in savings.

Get a secured personal loan from Advance America

Advance America offers title loans that can allow you to receive your funds the same day you apply. All you have to do is fill out an online application form and visit a nearby Advance America location to get your vehicle appraised. Your loan amount will be based on your car’s value, and you’ll be able to drive your vehicle as you repay your loan. Visit Advance America today to learn more about our title loans.

The Advance America advantage

Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.
148+ million
loans issued
900+ stores
and online loans
25+ years
providing loans