π Secured vs. Unsecured
An auto loan is "secured" by the car itself. If you don't pay, the bank takes the car. Because of this lower risk, interest rates are usually lower. A personal loan is "unsecured"βthe bank trusts your credit score, so the rates are higher.
π‘ Borrowing Tip: Always shop for the "Total Cost of Loan," not just the monthly payment. A lower monthly payment over a longer term often costs much more. Use our Loan Calculator to compare.
Compare Loan Options β