Are you having a difficult time keeping up with rising interest rates, or even just making minimum payments on credit cards, auto loans, student loans or even your mortgage. Are you having a difficult time keeping up with your monthly bills around the house? You aren’t alone. In these tough economic times it can be difficult to get any sort of help. For those with a poor or average credit history, it is even more difficult to get any sort of assistance from a bank in the form of personal loans or any sort of loan with a low interest rate.
One way to help yourself is to look in to secured loans for people with bad credit. Because you have bad credit, the lenders view you as a risk and will not lend you money due to the fact that they are afraid you may not repay. In this case you may have to look elsewhere for assistance. Search the internet and yellow pages for bad credit secured loan lenders. You will be able to get a loan with a lower rate than your credit cards as long as you are willing to put up some sort of collateral. This could be your house, car or anything else of high value.
Putting up collateral will help you get approved and help you get a lower rate than a personal loan because you are no longer a risk to the lender. If you default they will get their money back by taking your possession that you put up as collateral. There are risks with bad credit secured loans. Be sure not to be late on payments, and to make the whole payment, or else you will probably see huge hikes in your interest rate.!! Good luck, you will save money with a bad credit secured loan!
There are several ways to go about getting a bad credit loan, but possibly the best way is to get a bad credit secured loan. A secured loan is quite simply a loan that has some hard asset backing it, also known as collateral. They are superior to unsecured loans and payday loans because the interest rates are often much lower, saving you money in the long run.
With a bad credit secured loan the lender takes on less risk because if you fail to repay the loan they can take whatever you offered as collateral and sell it to get their money back. Secured loans are often used for large purchases, such as a home loan, but they are also good for those with bad credit who might be unable to get an unsecured loan. You’ll find that because of the guarantee that the lender can get their money back in case of a default the interest rates on a bad credit secured loan will be lower than those on unsecured loans.
It’s very common to see either homes or cars used as collateral for a bad credit secured loan, but other things can be used as well. So long as the asset is at least equal in value to the amount of the loan you can use many hard assets to get a secured loan. And when using your car or home as collateral against a secured loan you don’t actually have to give up possession of the item unless you default on the loan. So, you can continue driving your car and living in your house as long as you continue to make payments on the loan. It’s only when you fail to make your payments that the lender has the right to take your collateral and sell it to recapture their money.
Even though cars and homes are the most common types of collateral for a bad credit unsecured loan, some lenders will accept jewelry, stocks, coins and other collectibles to secure a loan. This isn’t all that common and it’s possible that in the case of jewelry and collectibles the lender will want to take possession of the collateral until you repay the loan.
You’ll find that in the case of banks and credit unions they typically only offer bad credit secured loans for homes and occasionally autos. There are other lenders however that deal with secured loans. You can find these companies in the phone book or more commonly online. Search for ‘bad credit secured loans’ and once you have a list of several lenders request quotes from them to see what they accept as collateral and what types of terms they offer. Some of the online companies will even retrieve quotes for you from several lenders all at once.
Once you’ve gotten your loan quotes you can contact the lenders to get more details and possibly negotiate a better rate. Choose the one that offers the best rates and terms and fits your budget. That’s all there is, it really is that easy to get a bad credit secured loan.