Consumer loan can be used for just about anything. Because a consumer loan often has no collateral-it is 'unsecured'-the interest rate will probably be higher. There are also secured consumer loans if you want to lower your costs.

Unsecured loans explained. An unsecured loan is more straightforward  you borrow money from a bank or another lender and agree to make regular payments until it's paid in full. Because the loan isn't secured on your home, the interest rates tend to be higher.

To get a secured loan, you'll pledge some sort of collateral, which the credit union can take if you fail to make your payments. You don't need to pledge your house, car, or jewelry cash secured loans use money in your account to help you get approved. A cosigner can also help you get approved.