A personal loan can be used for any purpose, whereas a secured auto loan can only be used to purchase a car. The amount that can be borrowed on a personal loan and a secured auto loan is determined by the lender, the loan, the market, and the borrower’s income and credit history.
Personal loans and secured auto loans can be fixed rate or variable rate. Personal loans can be secured or unsecured, while a secured auto loan is secured, usually against the car being purchased. Choosing a secured loan can make the loan cheaper and easier to get approved, as it is deemed lower risk by the lender.
Posted in: Applying for an auto loan