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secured loans for bad credit
HOW CAN I GET MONEY WITH BAD CREDIT?
Looking for secured loans for bad credit? It’s possible to borrow money with bad credit, if you know where to look. When you need money fast, bad credit is a factor for some options but not for others. Let’s look at some of the possibilities that might help you in this situation.
SKIP THE BANK LOANS: IF YOU NEED MONEY NOW, BAD CREDIT CAN BE A PROBLEM
Many loans require you to have a certain level of credit. Everyone has financial challenges now and then, and the harsh credit score requirements used by banks and other traditional lenders can be unreasonable under many circumstances.
It takes a long time to process all of the paperwork for a bank loan, and this includes onerous credit checks and other issues. Because banks will access your records during this time, you may find your credit score going down even if you do not qualify for a loan!
WHAT IS SECURED LOANS FOR BAD CREDIT?
For most people, the term secured loan is unfamiliar, but it’s actually very common. A secured loan uses an owned asset to “Support” the loan – like your car or a house. This is called collateral. This collateral-backed or secured loan usually has a lower interest rate because of the asset offered. However, secured personal loans usually carry a higher risk to the borrower for the same reason. If you’re unable to repay the loan, the lender can take legal steps to seize ownership of your collateral as a way to recoup the loss.
Don't waste your time. Get a loan online.
Secured personal loans offer several benefits, one of which is that they are generally easier to get thanks to the use of assets as collateral. For someone with poor or bad credit, finding a secured loan online may be the better option when it comes to borrowing money.
For example, if you use a home that you own as the collateral on a secured loan, and something unexpected occurred, so you were unable to pay back the money owed, the creditor could then sell your house to get back some or all of the money owed them.
While this sounds like a worst-case scenario, it was a very real situation for millions of homeowners caught in the housing and financial crisis of 2008.
So taking secured loan without proper plan to repay it might get you in trouble. as you might loss your valuable asset if you borrow irresponsibly and fail to pay back.
The risk of a collateral personal loan is that the possibility of losing your property, whether it’s a that car you own free and clear, or a home that you’ve worked so hard to purchase, is high. That’s why you must be very careful when considering an online secured loan, especially if there’s a chance that you might not be able to repay the loan.
Here are some examples of various secured personal loans available online today.
TYPES OF SECURED LOANS FOR BAD CREDIT
- Mortgage Loans: This is a real estate backed loan. The real estate can be properties such as a home, condominium, or apartment. The property that you purchase with the money is held as the collateral for the loan. There are a number of different types of mortgage loans as well.
- Home Equity Loan: This is also referred to as a Home Equity Line of Credit (HELOC). These collateral personal loans base the value of the loan on the value of your home. Using a professional appraiser, the loan amount is calculated using the house’s current appraised value, less what is owed on the mortgage. Usually, the lender will not offer a loan for the full amount of equity available, as they will want to leave a cushion in case home values depreciate.
- Cash-Out Refinance: This type of collateral loan replaces your existing mortgage. A cash-out refinance is another secured loan that pays off the balance on the mortgage. It allows you to use the equity in your house (the amount of your home’s worth above the amount of your current mortgage balance) to obtain funds for other uses.
- Car Loans (Indirect or Direct): If you’re in need of a loan to buy a new or used car, you will often get that loan by using that vehicle to secure the loan. This is an auto loan or car loan. There are actually two types of auto loans. One is a direct loan, where the bank gives you the money directly and then you pay the dealership, and the other is an indirect car loan or dealership financing, where the dealership acts as a go-between for you and the lender.
- Car Title Loans: For this form of secured loan, you use your existing vehicle title as the collateral for a personal loan. In most cases, you must own the vehicle free and clear. The loan is obtained by allowing a lender to place a lien (a legal claim) on the title. Additionally, you will have to give up the actual title itself for the loan money (these are sometimes still referred to as “pink slip” loans as years ago some certificates of title were pink in color).
- Passbook Loans: A passbook loan is a loan made using either a Certificate of Deposit (CD) or your savings account in order to secure the loan. Not every lender has this option available and not every lender offers passbook loans at a fixed rate and term.
NO CREDIT CHECK: GO ONLINE AND GET A LOAN FAST
When you need money, bad credit can be a problem. Don’t head to the pawn shop. or payday loans if you are not that financially stable , payday loan might need to repay in full with 1 or 2 weeks max, Use a trusted and reliable source to get money quickly. When you decide to work with MotiveLoan®, you maintain your freedom and independence while getting cash fast, often in as little as 2 business days!
MotiveLoan® does not enforce any restrictions on how you spend your loan money. Whether you have unexpected medical expenses, or need to do some holiday shopping, you will not face any eligibility restrictions based on your financial plans. We are here to help.
Summarize this whole article, Some people find secured loan as their preferred choice as they have lower or we can say more affordable interest rates. In addition, Depending on their credit situations the fact is some times lenders only agree to provide secured loans to them lowering lending risk to low credit people.
