A secured loan is backed by an asset, usually your home, so the lender may be able to repossess it if you do not keep up repayments. An unsecured personal loan does not use your property as security, but missed payments can still damage your credit record and lead to debt recovery action. Secured loans may allow larger amounts or longer terms, while unsecured loans can be simpler but may have higher interest rates depending on your circumstances. Compare the total cost, fees and risks, and consider guidance from a regulated adviser before applying.