Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


Secured and Unsecured Loans

Written by: Joseph Kenny

One of the most basic decisions when it comes to taking out a new loan, is whether to opt of a secured or an unsecured loan. Before we discuss the advantages and disadvantages, you should know that a secured loan means that if you cannot meet the repayments, the lender has access to an agreed security, such as your home or car, to pay off the loan.

This is the huge draw back of secured loans. The asset they are secured over is usually very important to the borrower. For most people, the two most important assets they own, and are least willing to part with, are their home and their car. Your home can act as security whether it is currently mortgaged or not. The size of the loan will also depend on, among various other factors, the value of the asset. For example, if you home is worth 50,000 it is extremely unlikely that a lender will grant you a loan of 60,000. At the same time, just because you have significant assets to secure the loan, does not mean the lender will lend you the full value of the asset. Factors such as your income, your current indebtedness, and your repayment capacity will also be critical.

Secured loans can be used for any purpose, typically debt consolidation or home improvements. However, since the loan is being secured over your home, many short term uses will inappropriate. While borrowing against your home to invest in home improvements may make sense, borrowing against your home in order to buy groceries and pay your day to day bills would not be so appropriate.

Secured loans, as well as being possibly larger than unsecured loans, will also be likely to have better terms and rates. A lender should be more willing to give you a lower interest rate on a secured loan because his risk is less. Should you default on the loan, he can move in on the house, and sell it. He is therefore, virtually guaranteed not to lose the money he lends you. If the loan is unsecured, it is significantly more risky, as should you become bankrupt, he may end up with nothing. While such outcomes are rare, and hopefully will not happen, they are the bread and butter of how interest rates are set.

Lenders will typically be more willing to lend on a secured basis too, for the same reasons. Therefore, if you find that you cannot get unsecured credit, you may try secured credit as a second option.


About the Author

Joseph Kenny is the webmaster of the loan information sites http://www.selectloans.co.uk/ and also http://www.ukpersonalloanstore.co.uk. At the Personal Loan Store you can find all the different Loan Types explained.


Other Related Articles:


Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/rliu008/public_html/redhotloantips.com/rotator.php on line 7

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/rliu008/public_html/redhotloantips.com/rotator.php on line 7
Student Loan Consolidation: The Other ReFi Boom
You've heard about refinancing in the mortgage market. Who hasn't? Interest rates are at all-time lows. Folks have refinanced two and three times in as many years to save thousands of dollars in interest they would have otherwise paid. There's a...read more

Mobile Home Mortgage Loans
A large number of prospective homeowners are interested in acquiring mobile or manufactured homes. Should these homeowners require financial assistance, they will need to take the assistance of approved lenders who make the money available...read more

Using A Calculator To Assess Your Loan
If you are looking to purchase a new home then you will want to use a mortgage qualification calculator to assist you in working out how much of a home loan you will be able to afford. A mortgage calculator is based around a computer program that...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map