If you have less-than-perfect credit, a secured loan can boost your borrowing power and may mean a lower interest rate, a lower monthly payment or even a higher loan amount. Secured loans are loans backed with something of value like a car, truck, motorcycle or RV, called collateral.
Keep in mind that collateral is subject to eligibility requirements such as the condition and age of your motor vehicle and proof of insurance. If the borrower fails to repay the loan, the lender may reserve the right to take the collateral.