Uses for Loans Secured on Your Asset

2007-03-08 10:33:40

( Financial )



Secured loans are easy to get even when you have bad credit because such loans are secured on collateral, such as a house, a car or even stock certificates. Lending companies and financial institutions are very willing to give you secured credit, regardless of your credit score or previous financial relationship with other creditors, because they know that they can get their investment back even in case of default.

There are three main benefits in getting loans secured on assets. First, secured credit is a great way to get cash when you are in need because loan providers will readily give you a loan. Lending companies are assured that even when you fail to pay your debt, they can get their money back because you provided collateral for your loan. Second, you can avail yourself of lower interest rates. Secured loan rates are usually lower than the interest rates of unsecured loans because loans secured on assets are low-risk loans. Lastly, it is easy to request for longer payment period for secured loans.

Uses for secured credit

Debt consolidation

One of the best uses of loans secured on property is debt consolidation because secured loan rates are lower than the rates of other loans. Thus, you can save money because instead of maintaining multiple high-interest loans, you will just concentrate on paying one low-interest secured loan.

Big purchases

A lot of people use credit cards or loans to pay for big purchases. You can use loans secured on assets in buying big items, instead of getting other loans, such as car loans or unsecured loans, to save on interest rate. As mentioned earlier, secure loan rates are usually significantly lower than rates of other types of loans.

Bridge loans

In case of emergency, secured credit is very easy to get. In just a matter of minutes, you can avail yourself of fast secured loans.


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