Secured Loans

Whenever you apply for a loan from the network of lenders we offer here you may be offered several variations of the loan ranging from quick cash loans, unsecured loans, secured loans, or APR variable loans. Each loan option provided by the lender will have its pros and cons, when looking at the variable APR rates between each individual loan, the total amount able to be rewarded for the loan, and the requirements that come with each loan which can include repayment terms, early payment availability, and how quickly the deposit can be made into your account to meet your need for money now. A secured loan is what will be discussed here and is one of the most stable loans available on the market, offering higher loan amount availability even if you have bad credit, and provides the consumer with the option for a longer repayment term.

What is a Secured Loan? What is “Collateral?”

A secured loan is often the preferred method for getting a higher available loan amount with a lower APR, along with an increase loan repayment time option available which helps lower your monthly payments. Secured loans differ from their close relative the unsecured loan, and it really is all in the name. The network lender can provide a significant bonus whenever it comes to a secured loan because you offer collateral (such as your title for your car or something else of value) to help lower the risk for the vendor. This loan is “secured” in the eyes of the lender because in the event you default on your loan for any reason, they will have a hold the collateral and it will not result in a total lost for the lender. In the event you do run into issues paying back your loan, please consult with your lender as they are always willing to work with you to help in the loan repayment and can help lower your rate, suspend a payment for a rough month you may have had, or even refinance the loan to do overall lower payments for the remaining life of the agreement.

When a Secured Loan May Be Better Than Unsecured

Despite your credit score, a secured loan is generally more favorable than an unsecured loan because lower risk for the vendor, means lower APR, longer repayment term, and higher loan amount for you, dependent on your needs. If these factors appear favorable to you this is when a secured loan may be better than an unsecured agreement. Your lender is likely to offer you one or both of these, however, if the loan agreement is similar between the secured and unsecured, it is ultimately up to you which one you want to choose. If you do not need a higher loan amount, or a longer repayment term (which can build up interest over time) then you can save money by limiting the amount borrowed and paying the loan off early, this is possible with a secured loan as well.

Requirements to Apply for a Secured Loan

The lender requirements for a secured loan does require a little extra paperwork, but most of it, if not all of it is easily filled out online. The required documentation will include proof of income, collateral of some sort, which is usually a vehicle title or something else of value, and a few signatures to finalize the agreement along with a valid government I.D. card such as a drivers license. Once you accept the terms of the loan and fill out the required paperwork with the required documents you will be well on your way to having the loan deposited into your account within 24 hours. The process is simple and fluid, and they make sure to keep it simple on your end. The more informed you are regarding the loan process, the more you know what to look for and what to expect!