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Secured Personal Loans – Single Solution For All Your Financial Ills

The general opinion of people about secured personal loans has undergone a sea change. They are no longer considered as evil as in the yesteryears. They have become as much a part and parcel of the present day’s individual as some of the essentials like food. In fact, it is secured personal loan which finances food and other needs in the absence of sufficient income.

Earlier people would abstain from taking personal loans unless it was very urgent. Personal loans during those times were more often than not secured through collateral. There was always a fear of repossession of the asset. The fears were not completely baseless. There were quite a large number of instances of borrowers losing their assets to loan providers because of non payment of the secured personal loans.

Lenders too have a changed their attitude towards borrowers. Lenders earlier felt that unless strict vigil be kept on borrowers, there are greater chances of defaults on the secured personal loan. However, there is not much truth in the allegations. Borrowers are obliged to repay any loan that they take. They know that they have no option other than to keep up with the payments. The payments have to be made, although may be delayed. It is the borrower who is most seriously disadvantaged. An increased payment has to be made in the form of penalty. The loan provider seizes the collateral and the borrower’s credit in the financial market sees a fall.

Lenders now try to go deep into the reasons behind the non payment, if any. For borrowers who are genuinely incapable of making payments at a particular point of time, the lenders are ready to make concessions in the form of payment holidays.

And why the borrowers of secured personal loans shall not be treated thus. Having offered the loan provider a right on their home or any other asset, they have covered a large part of the risk associated with lending.

Through secured personal loans, borrowers can get up to £75,000. The maximum the amount of secured personal loan goes is £100,000. The lower limit for the borrowers of secured personal loans starts from £5,000. The type of asset used for guaranteeing loan repayments will influence the amount of loan one qualifies for. The largest amount is lent against home. Loan providers mainly prefer home as collateral, because of the relative safety that homes promise.

Secured personal loans leave the decision of utility to the borrower himself. The borrower need not state the use for which secured loan is needed. If the loan proceeds have been taken for debt consolidation, the borrower at his will can use the loan proceeds for buying car, home improvements, or for going on exotic holidays.

Interest rate is where most borrowers find secured personal loans the best. Secured personal loans are the cheapest of all personal loans. The decreased risk and applicability to individuals rather than businesses keeps the interest rates low. Borrowers can find personal loans in the range of 6-25%, depending on several factors like value of the collateral offered, type of collateral, the credit status of borrowers etc.

Did we mention credit status? Credit status of the borrower indeed has a role to play in secured personal loans, though not as important as in unsecured personal loans. Borrowers’ bad credit history owing to CCJs, IVAs, and bankruptcy are little important in secured personal loans. These borrowers too can draw a good deal in spite of their bad credit history.

An important reason behind the popularity of secured personal loans has been the independence borrowers get in deciding the terms of the loan. The independence mustn’t be misused however. Taking decisions without sufficient information is as much of a misuse of independence. One must not hesitate from talking to experts on any of the issues associated with secured personal loans. It is actually your asset that is on stake in the secured personal loan, and taking the correct decisions will only bring you nearer to retrieving the rights to the asset again.

Cash Loans Information

Applying for a cash loan is usually pretty easy. You can apply for a cash loan at many different institutions and they can get you just enough cash to make it through the month or a little further.

Need a Personal Loan

You may need a personal loan for almost anything. You could be going on vacation, remodeling your home or just simply need some extra cash to consolidate bills. When applying for a personal loan you will be faced with a decision of rather you want a secured loan or an unsecured loan.

A personal loan will help you get the cash you need quickly. A personal loan will leave you with options such as how much money you want to borrow and how much time you want to pay back the money. These options will affect what your monthly payment is and will affect what the over-all interest will be, so make sure you know all terms and conditions.

Unlike other loans, a personal loan gives you freedom in how you spend your money. The bank has no say about how you spend your money, but these freedoms do make it harder to get a personal loan.

Payday Loan

A payday loan is a loan is a cash advance only until your next pay check. This loan is very useful if you need just enough money to get through the week until payday and the cash is usually in your hands in just a couple of minutes.

There are institutions that will pay usually around R500 and then could increase to R1,000 after a matter of time.

Much like a personal loan, there are secured and unsecured options. Although the majority of institutions will not require you to own a home, you could have other property you could put up for security. Also most banks do not offer a payday loan so beware you do not get scammed as the internet is filled with offers that are not real.

Most likely you will have to have a bank account and proven employment to get a cash advance. If you can produce proof of both employment and a bank account, you should have no problem getting a loan. In some rare cases a cash advance institution might do a credit background check on you.

If you decide you are going to take out a payday loan you should know that it can be very risky playing this game if you don’t intend to pay it right back when you get your pay check. The reason is if you default on any payments you will be looking at a 20% increase on interest and that interest will just increase more and more and could get you in a considerable amount of debt. If you know you can’t pay it back, you’re better off not taking out a cash advance.

Things to Consider

Cash loans can be a very convenient option depending on your situation. If you need cash fast and you don’t have a credit card or anybody you can borrow from, this can be a good option for you. Maybe you just want the leisure of having extra cash in case you need it. It is up to you.

Personal loans can offer you small to medium amounts of money with a flexible way of paying back the money you borrowed while improving your credit score. Interest rates will vary but will be a lot better than cash advance or payday interest rates.

Payday loans are good for you if you are in a bind and need money fast and can pay that money back sooner than later. A payday loan offers you a quick and hassle free way to put money in your pocket to get though the day, the week and if needed the month. The interest rates are a lot higher so the sooner you pay them back the better.

You Can Get a Bad Credit Personal Loan for $5,000

Even though your credit is lousy, there are lenders willing to grant you a bad credit personal loan for $5,000. It will also do the improbable thing of improving your credit score – if you stick to your promise. Facing the fact of having poor credit, you start to realize that you will get rejections when you try to buy a house or a car. Certain lenders are willing to grant you a bad credit personal loan. Sticking to the terms of your contract, you will be adding a good touch to your credit rating and start you on the road to good credit so that you can buy that car or house.

Competition Creates Advantages

One reason why these loans are so readily available is the fact that many private lenders have recognized that people with bad credit need a loan once in a while, too. Traditional lenders such as banks and credit unions have tightened their lending qualifications making it very difficult to get a bad credit personal loan for $5,000 even for people who have good credit.

Recognizing that there were plenty of people desiring a financial product, private lenders rose up to meet the demand. The price of their loans is a little high to offset their risk. Initially, a few lenders were the only game in town for folks with bad credit. Others saw the money that was being made and jumped in. To attract customers, some lowered their rates and the competition began.

Many Folks Have Taken Hits on Their Credit Records

In the tough economic times of today, many folks have had no choice but to take some hits on their credit records. Some have missed loan or other payments. Some have been in arrears, have had judgments against them, and some have even had to declare bankruptcy. These bad credit personal loans were made for them. They are the best way for people with bad credit needing a loan. Once you have the cash, using it is your decision. Some use them for bill consolidation. Others use them for medical costs, home improvement and other good things.

The Secured or Unsecured Bad Credit Personal Loan

Unsecured loans are backed up only by your promise to repay and your signature. Loan amounts will be low and interest rates will be rather high. With secured loans, the opposite happens – rates will be lower and loan amounts can be higher. Secured loans have valuable property to back them up. This collateral can be seized by the lender and sold to cover the cost of the loan should you default. This collateral can be real estate, or it can be stocks and bonds, or even a late model car.

Finding Lenders Online

One of the best places to shop for lenders willing to grant bad credit personal loans for $5,000, is the internet. Key your browser with the term Personal Loan and you will soon see scores of lenders who may grant you a loan. You will also find brokers who will take a general application and come up with a list of lenders who would be likely to lend to you in the light of the information you divulged. As mentioned, because of the competition, you will be able to actually shop for the loan with the lowest interest rate, low or no fees and the best repayment terms.

Once you have five or six lenders, check their reputations. You can start with the online listings of the Better Business Bureau. If they are acceptable, submit preliminary applications and see who comes up with the best deal for you. Choose the best; the lender could give you an approval within minutes and the cash from your bad credit personal loan for $5,000 could be in your bank account within 24 for hours, sometimes sooner.