A secured loan, or a homeowner loan, is different from an unsecured loan, as the borrower needs to provide the lender with a form of security. An item such as a car or a property is used as security for the loan and the lender holds the rights to the article until the borrower repays the loan.
- It is an effective way for homeowners to obtain money at an affordable rate. You are able to consolidate all other debt, and only make one monthly payment.
- You can usually borrow a bigger amount of money through a secured loan.
- The repayment period may be longer than with an unsecured loan. It could be up to 25, or even 30 years. You have flexible repayment options, and can choose to repay it over any period between 5 and 25 years.
- People with an adverse credit listing can still qualify, though their interest rate may be higher than the standard.
- You can decide how you want to use the money.
- You could possibly stay in debt for a long time. Opt for the shortest period over which you can repay the loan.
- You need some sort of asset to use as security for these loans. This might not be an option for those without a home or a vehicle.
- Make sure that you can afford your secured loan as failure to make your payments may put your home (or other asset) at risk.
The entire process does not take too long, from the initial application to receiving the money into your bank account.
- Contact one of our agents on our free number.
Debt Management Plan
What is a secured loan?
