Is there a difference between a collateralized loan and a secure line of credit? Both seem similar to me in that you are borrowing money against equity that you own (house,car, gold whatever)

1 Answer 1


Collateralized & Secured are interchangeable terms.
Note the following two quotes from wikipedia (links below):

"A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan."


"In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan."


This website also uses the terms interchangeably:


Loan & Line of Credit are not interchangeable terms.

In a loan, you receive a one time disbursement & repay it over a fixed amortization schedule. (Think home mortgage)

In a line of credit, you can pay back & re-borrow from your credit line as often as you need. (Think credit card or Home Equity Line of Credit)

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