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Secured Loans: ULTIMATE GUIDE to find the best dealThe main difference between secured and unsecured loans is collateral: A secured loan requires collateral, while an unsecured loan does not. While the interest rate on an unsecured personal loan is usually higher than a secured loan, it also offers a little more flexibility and a quicker and. The primary difference between secured and unsecured debt is the presence or absence of collateral�something used as security against non-.