Finding a Cheap Secured LoanWritten by John Mussi
In a time when everything seems expensive, it might seem impossible to find a cheap secured loan. Interest rates continue to climb, and prices everywhere continue to go up… but with a little patience and decent collateral (which is property that you offer to guarantee repayment of loan), it's relatively easy to find cheap secured loan that you need.
Shop around If you're looking for a cheap secured loan, don't take first offer that you get. Check with at least 3 or 4 lenders, comparing their interest rates and their requirements for repayment and collateral. What you're going to be looking for is lender with lowest interest rate and most lenient policies on collateral and repayment… this means that you'll get most value for your collateral, and you'll have flexibility that you need to make sure that you pay off your cheap secured loan quickly.
Aim for less than your collateral is worth When shopping for a cheap secured loan, ask for less than value of your collateral. A lender isn't going to give you total value of your collateral anyway, but if you're offering collateral that is worth quite a bit more than amount that you're requesting then they're much more likely to give you lower interest rates. A high collateral value in comparison to requested cheap secured loan amount all but guarantees that lender is going to get their money back… and they're likely to pass this on to you in form of low interest rates and lower monthly payments.
Everything You Need to Know About a Secured Loan Written by John Mussi
If you're not familiar with term, a secured loan is a loan which requires a security deposit of some kind (also known as collateral) to protect lender against nonpayment. The secured loan is preferred type of loan for lenders who deal with people with bad credit, but is also used when purchasing certain types of property (such as an automobile or real estate.) Interest rates tend to be lower with a secured loan than with an unsecured loan (which doesn't require collateral, but charges higher interest rates to cover additional risk.)
Types of collateral Just about any property with value can be used as collateral for a secured loan, though some types are more common than others. Jewelry and rare coin collections can be used as collateral for some loans, though they are usually held by lender to help protect them from theft or loss. Automobiles and real estate are popular forms of collateral, and lenders usually allow you to keep them while you repay loan… you simply turn over deed or title and lender is given a legal claim to car or house in case you should default on you secured loan (which is a fancy way of saying that you don't pay it back.) Car financing and mortgages are both forms of secured loans, in which automobile or real estate that you're buying with loan serves as collateral for lender.