A secured loan is a loan in which the borrower pledges some asset (e.g. a car) as collateral for the loan. The loan is thus secured against the collateral — in the event that the borrower defaults, the lender takes possession of the asset used as collateral and may sell it to regain the amount originally lent to the borrower.
Secured Loan Tips
Secured loans offer a great way to borrow the money you need and pay it back over a longer period of time than is normally allowed with unsecured loans. Secured loans are easier to obtain, especially for those with damaged credit, as long as the borrower can offer sufficient collateral. Further, secured loans are often obtainable at competitive interest rates.
When you're going for a secured loan, it pays to look for a loan with flexible repayment terms. Look for a loan that offers perks, like payment holidays. Payment holidays allow you to temporarily stop making payments for a specific amount of time.
Depending on your unique situation, you could borrow anything from £5,000 up to £75,000. However, some lenders may be willing to lend higher amounts. Your loan payments will be due monthly and the term of your loan will likely span between five and 20 years. The amount and term of your loan will be determined by several factors, including your credit rating, income, and employment status.
Even though you might be anxious to obtain a secured loan, discipline yourself and avoid taking that very first offer. It is imperative that you take the time to shop around and compare loan quotes. Doing so is the only way to ensure that you get the best interest rate, best loan terms, and best overall secured loan deal.
Source: Ezine Articles
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment