Edge of Bankruptcy

Submit Enquiry




Enquiry Type


Enter Code:

How Do Secured Loans Work?

If you're in need of money to purchase a home, car, or other piece of personal property, a secured loan is often the fastest, easiest means for you to get the needed funds. Most institutions will not balk at lending if there is collateral to guarantee the funds they lend you- your home, car, or other personal property item. This is a definitely plus if your credit rating has a blemish or two, as you will be able to borrow more money with a secured rather than an unsecured loan.

If you fail to pay the loan back, the lending institute will simply take the property that is connected to the loan. Secured loans are generally in a range from £3,000 to about £50,000, but can go as high as £100,000 depending on your situation, need and circumstances.

Refinancing a mortgage or other secured loan may enable the borrower to save a significant amount on monthly expenses by either extending the timeframe or terms of the loan, or paying off one loan with another that has a lower APR (Annual Percentage Rate). Secured loan interest rates are typically variable and follow the UK base rates, but can also differ significantly between lenders, so shopping around an comparing rates and terms is essential.

More often than not, the rates of secured loans are significantly less costly than the interest on credit cards and/or other unsecured lines and forms of credit, like personal loans. Refinancing your home to consolidate any personal, unsecured debt that you may have is really an option that is consistently growing in popularity. Seeing a zero balance on credit card statements is almost impossible to achieve when you can only pay the minimum amount due each month.

Available terms, amount borrowed and the assigned interest rate will vary, depending on the amount of equity you have in your secured property and your potential lender's view of your ability to pay (usually based on your credit report). If you are looking to borrow more than 80% of your property value, you can expect to pay a higher APR than if you're financing a lesser percentage; if your credit report has negative marks on it, you will also have to pay more for your loan.

Repayment plans are often on a monthly basis on a predesignated date and term, depending on the lender, and typically range from 3 to 30 years, whereas unsecured lending is usually no longer than 7 years. Be sure to read all of the terms and conditions including any fine print before signing your name on the dotted line.

Mary Simone recommends that you visit http://www.onlyfinance.com/ for more information on secured loans.

This article is free for republishing
Source: http://www.articlealley.com/article_89048_19.html

Don't Miss...
  1. How Do Secured Loans Work?
  2. Personal Loans
  3. Common and Costly Mistakes To Avoid When Refinancing Your Mortgage
  4. Bad Credit Secured Loans: Way To Recoup Your Credit
  5. How and When to Get Secured Loans with Guaranteed Lowest Rate
  6. Why Defaulted Student Loans Must Be Avoided
  7. Bad Credit Unsecured Loans: Help Fulfil Your Personal Demands
  8. The Pros and Cons of Payday Loans
  9. Get Cash on Same Day with Bad Credit Payday Loans
  10. Unsecured Cash Loans: Fast Cash To Patch Up Your Money Crack
  11. How a Bad Credit Mortgage Works
  12. Are Tracker Mortgages Worth It?
  13. Secured Loans: A Quick Guide for Consumers
  14. Are Tracker Mortgages Worth It?
  15. Improved Credit Score Spells Mantra for Bad Credit Mortgage Approval
  16. A Beginner's Guide to PA Mortgages
  17. Bad Credit Mortgage Loans How To Get Approved
  18. Collateral-Less Finance Unsecured Loans for Council Tenants
  19. Payday Loans UK: Give A Way To Instant Cash Sway
  20. No Collateral Loans For People With Bad Credit?
  21. No Collateral Loans For People With Bad Credit?
  22. Unsecured Personal Loans: An Opportunity for Those without Collateral!!
  23. Need an Unsecured Tenant Loans without Collateral?
  24. Unsecured Loans: Get Collateral Free Finance
  25. Unsecured Loans: A Multipurpose Collateral Free Assistance
  26. Tenant Loans: Do Not Requires Collateral
  27. Unsecured Home Improvement Loans: Cover Expenses The Collateral Free Way
  28. Money Sans Any Collateral: Personal Unsecured Loans
  29. Personal Unsecured Loans: No Collateral But Miscellaneous Benefits
  30. Fast Unsecured Loans UK: A Good Way To Get Collateral Free Credit
  1. Unregulated Loans Can Be a Trap
  2. Raising Money the Better Way Secured Personal Loans
  3. Do Not Kill Your Dreams, Avail Bad Credit Unsecured Loans
  4. Student Car Loans Own a Car at Low Cost Finance
  5. Online Personal Loans: A Click Away !
  6. Non Homeowner Loans - Home Is Not a Must to Get Loans
  7. Give Your Business a New Height with Secured Business Loans
  8. For a Happier Financial Life - Online Personal Loans
  9. Bad credit personal loans- Loans for poor credit holders
  10. Meet Your Aspirations with Bad Credit Personal Loans

© Edge of Bankruptcy 2008. All Rights Reserved