Secured loans share many similarities with a mortgage. It is used for borrowing a relatively large amount of money. It is a long-term loan. Most importantly it is secured through the use of collateral, usually in the form of property. Getting a loan is a big financial move. Understanding the pros and cons of a secured loan is essential for making the right decision.
The ability to borrow a large sum of money is one of the greatest advantages of these loans. Don’t be limited by the typical unsecured loan which only lets you borrow a small amount. Make the most of a secured loan and borrow up to £100,000 or more. For a more accurate estimate of your total potential loan amount, check the current value of the collateral you will be using.
Low interest rates are what make these types of loans so effective. We all want to get the cheapest loan possible. An outstanding credit rating score can further lower the interest rate you have to pay, since loan providers will feel more comfortable lending to you. So don’t be afraid to negotiate for a better deal whenever possible.
A long repayment period allows you to spread out the monthly payments so you aren’t under much financial pressure. Having some flexibility with the repayment plan is a definite plus with any kind of loan. Another upside of having a longer time to repay the loan is it can further lower the rate of interest.
Do you have a poor credit history? That isn’t a problem as far as applying for a secured loan. Many people with a bad credit rating automatically assume they have no chance of getting a loan. But by offering a property as a security against the loan, you won’t face any such difficulties.
The loan is offered against the guarantee of an asset such as your home or some other property. This brings with it all the advantage mentioned above, but also has some downsides. If you were at some point unable to continue making the regular repayments required, then your property could become repossessed.
How to Apply for the Loan
As you can see the list of cons is much shorter than the pros. As long as you understand the conditions of the loan and it is a good fit for your situation, then you should start looking for a good loan provider.
Always go to an established lender when looking for a loan provider. There are many online sites that specialise in giving you the best loan deal tailored to your circumstances. Make an online application with the UK’s top loan site: www.appleloans.co.uk apply here. You could be minutes away from being accepted for a loan. Enter all your details in the provided form and you will receive a decision shortly. It really is that easy. Ultimately you should find a company you are happy to deal with and trust.
Are you a property owner and are looking for a loan?
A secured loan is one option that should be seriously considered. From debt consolidation or home improvement, to education costs or launching a business, these are just some of the reasons people apply for a loan. So whether you need to borrow money for personal reasons or business purposes, secured loans can be a compelling offer.
Before you actually apply, you should understand how this kind of loan works and the benefits that come with it.
But what is a Secured Loan?
To secure a loan, you have to provide some sort of asset (usually property, or sometimes a car) to serve as collateral. Of course this does introduce some risk, but any type of loan will have some potential risk for all parties involved. The important point to remember is to look at your particular situation, and make a decision that works best for you. Many people find that the benefits gained from these loans, far outweigh any drawbacks.
This extra security allows the lender to offer you better options and more features in your loan. These advantages can often tip the scale when choosing between an secured and unsecured loan.
Benefits of Secured Loans
One of the greatest benefits is the increased flexibility you get, when compared to any other type of loan. With less restrictions and better terms available, you can make the most of your borrowed funds.
For anyone with a poor credit rating, secured loans are usually their best choice, and often the only good choice. So if your credit score is less than perfect, you can still borrow the money you need to achieve your goals.
In general, it is cheaper than most other types of lending options. So in the long run you will end up paying back less.
You can borrow a much larger amount of money, especially in comparison to an unsecured loan. In many situations you need to borrow more to meet your requirements. This is why securing a loan can be the ideal solution in such cases.
In addition, you have the option of much longer repayment periods, which also means lower monthly repayment. You can adjust the repayment plan to suit your financial needs and overall income.
It’s really straightforward to apply for a fairly rated loan. Obtaining secured loans is easier than you think, apple loans make it simpler to decide between loan options. An easy to use loan repayment calculator and super fast response after applying, streamlines the entire process.
All these benefits make a secured loan the best and most viable option for many people in different situations.
At the end of the day, the exact features and benefits of the loan available to you will also depend on your profile and particular needs. Loans are available to people of various backgrounds and financial means. A well planned and managed loan can provide you with the perfect opportunity to find a solution to a problem, or move up in life and make your dreams a reality.
What To Consider Before applying
Getting a secured loan isn’t hard these days, because they are generally safer for the lender. However, before you decide to get one, be sure to read the following list of things that you should consider before. If you read and apply these tips, you might save a lot of money.
The first thing that you should consider is this one: “Do I really need the secured loan, or will the credit card loan suffice?” You see, one of the most common problems that people face is that they can’t really estimate whether they need the loan or not. The cheapest borrowing available to you is credit card borrowing, because it is completely unsecure. You want to use this option if you don’t need the large sum of money.
Now we come to the unsecured loans. Unsecured loans are pretty hard to get these days, I don’t want to lie to you about that. However, they are also cheaper and less risky, because you don’t have to secure them with your real estate property (nor any other property for that matter).
If you get rejected to an unsecured loan, you should try to check your information at the major reference agencies such as Equifax, Experian and CallCredit. Sometimes, there might be an error in their system that indicates that you have a bad credit history, when in fact you don’t. It’s always a goof thing to check.
You should try to pay off your debt with your savings. The math is really simple here, because the interest that you get on savings is a lot smaller than the interest that will be charged to you while borrowing. One interesting strategy is to use the savings as a measure of paying the debts off, while locking away the credit cards for emergency life situations. The logic behind this is that the money that you have saved is always there, but the emergency situations are never certain so that’s why you should appoint the credit card money to them, because in the end, you might not even pay anything (if the emergency doesn’t happen).
Shuffling your credit cards is also an idea to think about before deciding to go for a secured loan. Lots of credit card companies are willing to cut the interest rate on existing debts substantially if you are willing to move other debts over to them. They will also give you a special rate on this as well.
You can pay off your debts or invest into something without a secured loan if you are willing to change your lifestyle. This is not just dreaming. There are countless people out there who were able to save massive amounts of money by moving to better quality products, while cutting their costs in the first place.
Consider hiring a debt counselor if you find that you constantly have problems with debt. This kind of help is really valuable, because the professional will be able to give you the exact core reason on why you are always in debt. You know, a single secured loan might solve some of your issues if you are thinking short-term, but who can guarantee that you won’t get into debt after some period of time? It’s very important to know the root of your debt problems.
Finally, if you decide to take a secured loan anyways, take it if the debt that you are about to pay is high. Also, don’t fall for the sales pitch that debt consolidation is better, simply because this issue is only psychological in nature. In reality, you will give them more money.
The Advantages of Secured Loans Over the Unsecured Loans
The first thing that you have to decide when taking a loan is whether to take a secured loan, or an unsecured loan. In this article we’re going to find out about the advantages that the secured loan gives you versus its unsecured counterpart. If you want to get a risk-free secured loan, you can check out
The first thing that you will notice is that banks and other private companies are much more opened to giving you secured loans. This goes without saying if the amount that you want to borrow is bigger than 25000 pounds. This is common sense, because they know that their investment is protected by your own property. Don’t forget that your own home is endangered. If you aren’t able to pay the fees off every month, you will lose it.
One term that you have to be aware of is “second charge”. This means that the property which you are using as security is already under a mortgage. In contrast, first charges are properties that are not mortgaged at all.
The thing with unsecured loans is that they are very hard to get in these insecure financial crisis times. That’s why not only is a secured loan a better option, but it is also rapidly becoming the only available option for you.
One major argument for getting a secured type is that the conditions have really loosened up in the past few years. In some cases, you won’t even need legal advice concerning them, because nowadays they are so easy to understand.
The next thing that you should consider is that the repayment period is much longer. This means that, while in the long-term you will pay more money, the pressure won’t be near as bad on the monthly basis.
Believe it or not, having a collateral which can be repossessed can sometimes motivate you to pay your debt off in time. If you don’t have any risks, which is the case with unsecured loans, your credit history is actually start to look bad after some time, simply because you don’t have any incentive to pay the loan off.
People rarely consider that the interest rate is usually much lower in the case of a secured loan. They also come at the fixed rate, which is always better for a person that has to repay the loan, because there are no uncertainties. Consider the variable interest rates with unsecured loans; in these times they can go up unexpectedly, and then you are in trouble.
Banks will also tend to allow you secured variants because they will get more interest out of you. How? Well, they know that you will want to prolong the repayment period for as much as you can, and this is actually good for them. It is also good for you, because on a monthly basis, as I’ve already mentioned above, you won’t feel near as much pressure as is the case with the unsecured option.
Finally, secured loan options are always better than remortgaging because you avoid the problem of losing special rates that you typically enjoy when having a single mortgage deal. Also, if you’re planning to change the mortgage, you will face huge repayment charges.
The final advantage is that this type of a loan can be used for various purposes. This means that you’re not limited by remortgage usage restrictions.