If you find that money is tight quite often, it can be difficult to enjoy your life to the fullest. You might be unable to take your kids on holiday or go on a day out. Your home and your car might need vital repairs. But you don’t have the means to upgrade or replace them. It can be an extremely difficult situation to be in. Thankfully, a secured loan could be the solution you have been waiting for. Secured loan providers use a valuable asset such as a car or home as equity and lend you the money you need. To find out more, here are some excellent reasons why they are so good.
You don’t need a high credit score
Secured loans, otherwise know as second charge secured loans are available to homeowners with bad credit scores. This makes it a perfect option for people who have been denied loans in the past. Secured loan providers are able to do this because your asset, whether it’s jewellery or your home is being used as collateral. So the risk to the lender is far lower, and your credit score is not as essential, unlike other types of loans. Another benefit is that if you keep up with the repayments of your secured loan, this can help to improve your overall score. Making it easier to borrow money from other lenders in future.
You get longer repayment times
Another reason why these loans are the best is because many providers offer longer repayment times. This can often be years rather than weeks and months. You will usually be given the option of how long you need to make the repayments when you apply. This can be extremely convenient and allows you to fit it around your lifestyle. In many cases, the longer the period, the lower the interest rates are. This can make paying off your loan very affordable and gives you more flexibility. The timescale in which you have to repay the money will vary depending on which lending service you use. So always check this before you apply to avoid any nasty surprises.
They are easy to apply for
The internet has made applying for a secured loan easier than ever. You just need to fill in a short application form on a secured loan website and send it off for approval. This speeds up the borrowing process and could give you the money you need more quickly. Start thinking about what personal asset you could use as collateral. There will also be other criteria you have to meet to ensure your loan application is successful. Many lenders will also require a reason why you need the money. So make sure you have a clear idea of how you want to use the money too.
These reasons should make you feel more confident about taking out a secured loan yourself. But before you apply, make sure you do your research and compare interest rates and charges. That way you know you are getting the right secured loan for you and your family.
Photo Credit: Cafe Credit via Flickr, under the Creative Commons License
Leave a Reply