Secured loans refer to money advanced by a lender to a borrower against an asset owned by the borrower. The asset is looked upon as a guarantee that the borrower will pay the loan. In case of default, the lender has the legal right to re-possess the asset used to secure the loan and sell it to recover the loan balance. Examples of secured loans include homeowner loans, car loans, and guarantor loans.
While organizations love to offer loans to individuals with a good credit rating since it highly assures them of repayment, efforts have also been put in place to ensure that individuals who have a bad credit can also access loans. Secured loans for bad credit refer to loans offered to individuals who have a bad credit rating against the security these individuals attach to the loan. Loans for bad credit can be either of the secured loans mentioned on offer.
This however does not mean that the lenders give loans blindly to individuals that have a bad credit rating. Lenders take time to analyze the circumstances of the borrower before advancing the loan. This includes taking time to look into the current financial disposition of the borrower to ensure that they will be able to repay the loan. These individuals are also given smaller loan amounts to repay in a shorter time span to help orient them back into the world of lending. Organized loan repayment means that individuals with a bad credit rating get the opportunity to improve their credit rating. Reports about the repayment are sent to the credit bureau to have a positive impact on the client’s credit rating thus repairing the once damaged rating.
In case a client with bad credit rating does not exhibit the ability to repay the loan, these ones are unable to access loans. The lenders do not delight in taking up and selling borrowers assets. Despite the fact that you may possess an asset, your exhibiting inability to repay the loan disqualifies you as a borrower.
We offer a variety of secured loans. Your ability to repay the loan and possession of the guarantee needed for the loan qualifies you for a secured loan regardless of your credit rating.
We have low cost homeowner loans to offer our clients. This type of loan is usually offered to those who have legal documentation to prove that you are the property’s owner. Homeowner loans entitle you as the borrower able to access huge loan amounts that are payable over a longer time that other loans. Despite your ownership to the home, you need to be of the legal age of 21 and show ability to repay the loan as per the loan agreement.
Car loans are offered to car owners. This loan allows the borrower to access loan amounts that are lower then the maximum limit of homeowner loans. This is because of the high value of a home when compared to a car. A borrower is able to access a certain percentage of money in relation to the cars value. Documentation to prove ownership of the car is required during loan application. These documents are usually withheld by the lender until the loan is repaid in full.
Guarantor loans are types of secured loans offered to clients with either good or bad credit rating. The terms of this loan are quite different from those of the homeowner and car loans. The borrower is expected to show the ability to repay and get a guarantor to stand by them through the loan period. In case the borrower is not able to repay the loan at some point, the guarantor is expected to take over the role. Guarantor loans differ in many ways, for some lenders, the guarantor should be a homeowner while to some; they should be in full time employment.