There will come a time in your life when you need some extra cash. If you’re lucky enough to own a property and some assets, that process becomes much easier. Today, we’re going to explain all the ins and outs of secured loans in the hope of increasing your education. Just make sure you always read the small print before signing any contracts. The terms can vary from lender to lender, and you don’t want to accept a bad deal.
Available for people with poor credit scores
Your credit score doesn’t matter as much as you might think when applying for a secured loan. The lender is more interested in making sure your assets can cover the repayment costs. If you fail to send payments on time, they will start proceedings to take your home or car.
Extended repayment schedules
Unlike personal loans, secured loans often allow much longer repayment schedules. That’s because it’s possible to borrow up to £250,000. So, some companies will let you pay the money back over twenty-five years.
Excellent for debt consolidation
People who find themselves in a lot of debt could make their lives easier with a secured loan. They could use the money to pay all their creditors and consolidate their financial responsibilities.
You’ll notice an infographic below this post that offers more information on the subject. Make sure you read all the text carefully before pushing ahead with the secured loan idea. It’s not the best option for everyone, and so you might like to consider alternatives.
Infographic Created By Evolution Money