Getting a quick loan comes with more or less relevant risks. Normally, these risks depend on the actual type of loan. Loans can be classified by more criteria. For instance, you can choose between secured and unsecured loans.

Secured loans bring in more risks, yet you get a lower interest rate. Basically, you have to guarantee the loan with an asset. It can be a car or perhaps your house. It depends on how much money you need. If you fail to repay the loan, the lender will recover the money by taking over the respective asset and selling it. Just like you have probably guessed already, you are limited by more factors. The value of your asset is by far the most relevant one in the process.

Unsecured loans do not ask for any guarantees at all. The risk is transmitted to the lender However, it does not mean that you are risk-free. In fact, lenders can perform a lot of actions in order to recover the money. In this case, the loan is no longer limited by the guarantee, but by your personal capability to repay the money. It is calculated independently by each lender, so your limitations vary a little.