Looking for a Secured Loan? Request a Quote Today!
Secured UK Loans is pleased to offer UK secured loans at very competitive rates and terms. Our are a great option for those who are looking for a low cost loan to consolidate their current debt, buy a car or just about anything.
Poor or bad credit applicants accepted! The benefits of a loan that is secured by an asset is that lenders are more likely to accept applicants with poor or bad credit, because the loan will be secured by an asset.
No additional fees! Using this quote service provided by us is absolutely free. You will not pay any additional fees or penalties!
Self-employed applicants accepted! We understand that borrowing can be tough for self-employed applicants and we will work to find you the best option for a loan from a lender that will accept self-employed borrowers.
Competitive loan interest rates! Secured loans typically offer lower interest rates than those offered on unsecured loans and we work on your behalf to get the best rates possible!
Flexible repayment options! We offer loan quotes with flexible repayment plans to work with your budget. Apply for a quote today and we will do everything possible to offer a loan at rates and terms that work for your particular situation.
What is a Secured Loan?
The first thing you realize when you start looking at financing options is the fact there are a lot of different types of loans. For instance, what is a secured loan? Secured loans are the most common form of loans that are issued these days. Let’s take a closer look at them.
Secured loans are simply a type of financing that is anchored to something valuable. For example, a homeowner loan is one form of a of this kind of loan. In this case, the home acts as the security for the borrowed amount. If you fail to maintain your payments on the loan, the bank can move in and foreclose on the home. They can then sell it at auction to recover the amount of money that they loaned you, but you failed to pay back.
While the idea of exposing an asset might not seem like a good thing at first, it is important to understand that secure loans typically offer much better rates than unsecured loans. The reason for this is the lender faces less risk. If you do not pay on an unsecured loan, the lender really has little chance of recovering the money. With the secured loan, they can obviously come in and seek the asset that was used as the security. While they really don’t want to do this, at least it provides them with a remedy for the money they lost on the loan.
Secured Loans vs. Unsecured Loans
When looking for a loan, borrowers often have to decide between secured vs unsecured loans. Both have advantages and disadvantages as we shall see shortly.
Secured loans are those where tangible assets are pledged as collateral, with homes and cars being the most common form of pledges. As lenders tend to feel more comfortable with this type of loan, terms also tend to be more favorable to the borrower.
Credit history may not be as critical in a secured vs unsecured loan, and just fair credit may be considered, a noted plus in view of today’s credit crunch. Longer repayment terms, along with lower interest rates, are usually the norm.
Unsecured loans, on the other hand, such as credit cards, veer toward the utmost caution from the standpoint of the lenders. Interest rates in the high teens or low twenties are typical, and at least good credit is generally required.The loan amount required should be carefully considered by borrowers contemplating secured vs unsecured loans, as secured loans usually lend themselves to larger amounts. Unsecured loans should definitely be considered for lower amounts, as a collateral can be saved for future use.
Benefits of Secured Loans
There are many benefits of a modern secured loan opposed to an unsecured loan. For example, if you possess a home, you have an improved ability to offer the needed security to a bank or any other lender, therefore you have more chances of getting credit. The biggest risk from your lenders point of view in not that you would take a loan on a longer period of time, but that you won’t be able to pay them back.
Some of the benefits of secured loans are:
- You can apply even with a poor credit history: a real benefit, as the creditors are willing to overlook a poor credit history if you can provide them with enough security.
- More capital available: this is another great advantage of secured loans, as you will be able to borrow a larger amount of money than with an unsecured loan.
- A less risk involved: simply because a secured loan is less risky for your lender, he will offer you more attractive conditions and terms regarding the loan. You will therefore benefit of lower interest rates, a very generous loan agreement and less penalty charges.