What are Secured Loans?Written by John Mussi
Secured loans are one of most popular personal loans options available today. Their popularity is based on fact that interest rates are usually lower than other types of loan, and repayments are available over longer time periods. A secured loan provides a means to raise a cash lump sum using some form of collateral on which loan is secured. The collateral acts as security for repayment of loan in event that you are unable to meet your loan repayment commitments. A secured loan is a loan where you pledge your home against amount of money borrowed. In event that you default on personal loan, lender can sell your home to recoup loss. A secured loan is a type of loan available to people with securable assets. Usually these assets take form of property, such as a home; this is why secured loans are often referred to as 'homeowner loans'. You do not have to own your own home outright to be able to take out a secured loan; if you have a mortgage you can put proportion of home that you own up as security. Secured loans require some type of security to be provided to lender. This security can be a home or other high valued possession. These items are provided to lender as security or collateral in case person who is taking out secured loans does not repay funds.
| | How To Get a Low Interest Credit CardWritten by Tom Coleman
Consumers often have first credit card that they ever applied for, never really analizing how interest rate affects their payments, but many other options exist and can help consumers decrease their payments and achieve financial stability.With interest rates on some credit cards rising to over 23%, even low balance credit card debt can be crippling. One of first research elements a prospective borrower should look at is interest rate on transferred debt. This interest rate is often lower than usual interest rate for credit card, and can be an especially good deal for borrowers who have debt already. Another element to consider is interest rate on new purchases – this rate will be main concern in years to come, as this new credit card will probably become most heavily used. Borrowers often worry about annual fees, but these are often temporary. Getting a credit card with low interest rates will save a borrower significant sums, usually much more than annual fee. Plus, once good credit is established, annual fee may later be waived. Another interest rate will usually apply, as well – rate for cash advances. Cash advances are usually limited to a couple hundred dollars, but credit card companies often insist that when paying back balance, credit portion must be paid back first, then portion that cash advance applies to. So if you are going to keep a balance on your credit card, be aware that cash advance interest rates are higher than regular interest rates. Cash advances can be incredibly helpful in emergencies, though, when a credit card cannot be used.
|
