What is a secure line of credit?

A secure line of credit is a line of credit that is backed up by collateral, meaning the lender has legal rights to some of the borrower's assets in the event they fail to pay. Secured lines of credit might be things like mortgage or home equity lines of credit (HELOC) that give the lender rights to real property. A secure line of credit usually allows lenders to safely lend larger amounts at lower interest rates.