What are the benefits of applying for secured loan?

Posted by juliabennet on August 22nd, 2012

You may be looking for ways to finance your business idea but because of your poor credit history, it may be difficult to find a lender offering finance. In addition, as the history of your refused loan increases, your credit further deteriorates. Here is a guide on refused and a secured loan, and the benefits.

Your credit is determined by a number of factors, with your job status being one of the more crucial ones. Lenders want give a lot of emphasis to your monthly income and expenses. In addition, they would also give attention to any defaults in the past. So, if you don’t fall into the ”positive” category of lenders, you can look forward to getting a  refused or secured loan.

A secured, refused loan would require you to offer a collateral as a security against the money. This collateral would act as a secured debt against the finance offered by the lender. The lender would be able to take possession of the asset if you are unable to make the payment. The law would allow the lender to sell off the collateral and get the outstanding amount from its sale.

This type of secured loan has become increasingly popular, where the lenders are specifically interested in offering loans to those who have been refused earlier. This type of arrangement is beneficial for both parties. One of the benefits for the borrower is that it is possible to repay the loan over a long period of time. In fact, some of the lenders can offer you a repayment period of as much as 30 years.

In addition, a refused loan is a more reasonable option than regular finance. This is because the interest rate is lower and the APR is also a lot less as compared to the unsecured options. If you have previously been refused a loan because of your poor credit history, it would advisable to seek secured types of loans because the lender gets an assurance in the form of collateral which will enable them to offer you a better deal.

There is no longer any need to run from one lender to another to get a secured loan. All you have to do is to go online and search for the most reliable, licensed providers. You can check for the products and rate of interests and complete their online form. They will contact you in order to complete the process. Usually this type of refused loan takes around 24 to 48 hours to process and approve.

There are many lenders today who are ready to offer you a refused loan even if you have bad credit and have been refused many times in the past. Visit the website given here and you will be able to find the secured loan lenders with the best deals.