What is a secured line of credit?

A secured line of credit is a revolving credit line backed by collateral. Instead of receiving a one-time loan payout, the borrower gets access to funds up to a set limit and can draw, repay, and borrow again as needed.

How is a collateral line of credit different from a one-time loan?

A collateral line of credit provides ongoing access to funds and lets the borrower draw only what they need. A one-time loan provides a fixed amount upfront and usually follows a more structured repayment schedule.

What assets can be used for a secured line of credit?

High-value luxury assets such as watches, fine jewelry, diamonds, gold, and designer handbags can often be used as collateral for a secured line of credit, depending on condition, resale demand, and lender requirements.

Do secured lines of credit require a credit check?

Many collateral-based secured lines of credit are approved based primarily on the value of the asset rather than the borrower’s credit score.

Is interest charged on the full credit limit?

No. Interest is typically charged only on the amount the borrower actually uses, not on the full available credit limit.

Can more assets be added later to increase the credit limit?

Yes. In many cases, borrowers can add more eligible assets later to increase the available credit limit, subject to appraisal and approval.

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How Luxury Goods Are Becoming the New Line of Credit

By Logan Simmons | edited by Dan Bova | May 07, 2026

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Michael Manashirov discusses the launch and growth of Qollateral, a company that offers high-value collateral loans to clients in NYC and across the nation.

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