Sunday, 15 December 2013
Wednesday, 11 December 2013
When I sit about answering this question, what I am really talking about is when you should and should not opt for a secured loan. Therefore, the emphasis remain on the factors which determine whether or not it is these secured loans you need. One thing I can assure you is that these secured loans are not compatible with every one of you. Having said that, I can start discussing factors which you should look into yourself for.
Firstly on the list is the collateral. What primarily sets apart secured loans from unsecured ones is the presence of collateral. This means that to get your hands on a secured loan, you first have to secure the loan by pledging something as security. This can be anything from your house to your car. If you can afford to get access to something you can keep as collateral and think it is in your interest, you have your go ahead. However, not everyone is able to do so. For the latter category, the secured loans are quite distant as a result of this absence of collateral. Hence, the first stop in your self-assessment is assessing whether or not you can manage to secure your debt. At times, people do have houses and other properties but feel rather reluctant in using them as security for their debt. Thus, it is not just dependent on your ability to manage a collateral but also on your willingness in doing so.
Secondly, your credit rating comes into play. The reasoning is simple – secured loans for obvious reasons are less risky to lenders and therefore, do not have hefty credit rating requirements. In contrast, unsecured loans are relatively dicey, which is why lenders of such loans are more into looking into the creditworthiness of the borrowers. With secured loans, even with high chances of default comes a guarantee of collateral seizure. Now, if you do have a credit rating you can boast about, you can manage an unsecured loan if you want. But, and this is a bit but, if you do not, chances are that the lenders would be rather reluctant in letting you get access to unsecured loans. Here, you have two options – either you can simply resort to secured loans and set apart an asset as collateral or turn towards loans for bad credit individuals. The latter comes with amplified interest rates and thus, if you can manage a collateral, secured loans are my personal recommendation.
Lastly, your personal preference comes into play. One reason behind it is the varying cost of the two types of loans. Unsecured loans come with relatively hefty interest rates, while secured loans, as a result of reduced risk, are not that expensive to service. However, the factors that shape your preference are not limited to the cost and can extend further.
The end result would be a weightage of the above mentioned factors, which would form the perfect cost-benefit analysis, making the result clear to you. Getting loans entail servicing in terms of interest rate payments, while they have a bunch of other repercussions, as well. Therefore, exercising negligence is not a wise option for anyone. You need to know what kind of loan fits you better and the above mentioned analysis helps you figure just that.By the way I read all this about secured loan on www.quick-secured-loans.net, you can also visit this site.
Thursday, 5 December 2013
Whether it is these secured loans or anything else for that matter, it is never really a wise decision if you go in looking for the cheapest option possible and jump at it the first opportunity you get, without taking into consideration all the different facets. Therefore, do not just look for the cheapest loans, but ask yourself what you actually need.
There are questions that must be answered. For instance, you can start off by asking yourself whether or not you are ready to get into bed with a lender you have not heard off. Secured loans are protected by your asset, which makes the lender able to appropriate this asset of yours in case you do not meet your obligations towards the debt. How much time would the lender take before it takes the ultimate step of seizure? You can never know as it varies from one lender to another. Your ability to convince and ensure payment also comes into play. If you choose an entirely new, never heard of lender, you cannot be sure of how much leniency you will be shown and how other matters regarding the loans would be conducted. Therefore, it is a safe route if you give preference to the known entities,
Moving on, you also need to ask yourself how much you can afford to borrow, service, and pay back. This will help you filter the results and consider those which fit your specific requirements. Similarly, what if you want to pay back the loan early? Many lenders impose a penalty in case you wish to pay back the loan early, while many choose not to. There is no lack of different types of such questions, all of which indicate to you the type of loan and provider that you need to look for. Thus, keep in your mind these factors and do not just go in blinded by the sole goal of getting the cheapest deal.
Once you are clear on the target as to which loan you want, you can proceed to the stage where you actually start looking for a loan. In the age of technology, you should not find it difficult to get access to a bunch of different websites which allow you to compare and contrast between different types of secured loans that fit your requirements. These websites bring to you, under one platform, the ability to look at all your options. You will be able to see the amount you can borrow, the annual rate you will pay, the ultimate amount you will pay back, and the amount of monthly repayments. On top of this, you will also be able to look at other attachments like the previously mentioned case of early repayments and repayment holidays.
Once you know what you want and the doors opened to you, you will end up with a loan that is tailor-made for you. This will not be the case if you are unsure about what you need or what options are available to you. Henceforth, an informed decision requires following the above mentioned steps.
Thursday, 28 November 2013
Overtime, lenders in the UK are growing more and more cautious as to who to and not to lend money. As a result, the procedures that surround unsecured loans have grown more tedious and the credit checks, more thorough. In such an environment, we have several different potential repercussions. One of this heap of different repercussions, according to me, is masses turning towards the alternative. I mean obviously, if you cannot get coffee, you will consider tea, or if you cannot get washing powder, you will consider washing liquid. Similarly, for those unable to get access to unsecured loans, the next best alternative seems like the immediate substitute – secured loans. So, it is safe to say that increases in popularity of secured loans is not solely a function of the benefits such loans accompany but also the troubles that the substitutes put us through.
To give you a peek at the numbers that corroborate the above mentioned information, I have set aside supporting statistics. If we rewind back to a year ago, around this time in 2012, the average lending per month was about £33 million. If you think this is astonishing, I think you will love what is next. While this figure may be quite high on its own, we saw a startling increase to about £42 million in the first three months of this year, showing us more clearly than ever the high demand for secured loans. Upon comparison, the figures over the last 12 months show a 47% increase, which is by no means ordinary.
Numbers are statistics and these statistics represent increasing penchant for the people of the UK for these loans. However, does that really mean that the secured loans industry is doing more business than it was? Or does it mean that we are just writing higher cheques? A further look into the situation allows us to see that the lenders have actually increased the upper limits on the loans they give, allowing borrowers to get access to much bigger amounts. This explains the increasing figures and thus, show that while there may still exist the fact that an increasing number of people are turning towards these loans, extending limits has also added to the numbers.
Wednesday, 20 November 2013
The most basic questions that awaits us when we decide to get a loan is whether we want a secured loan or an unsecured one. If you are faced with this very same question, we help youacquaint with the reasons why you should put your finger on a secured loan.
1. The Ease Factor: While many unsecured loans are becoming increasingly hassle-free, I cannot ignore the credit check factor and other protocols that are followed, before the lender approves of a borrower. However, with secured loans, you are securing your debt through the collateral, making it ever easy for the lender to approve your application without putting you through any arduous procedure or extended wait.
2. Interest Rate: Collateral means higher certainty, which in turn means that lenders are taking lower risk when they offer secured loans. As a result, these loans accompany relatively humble interest rates.
3. Higher Borrowing: When compared to unsecured loans, secured loans can be as much as 3 times their amount, allowing you a much bigger amount to be borrowed. If you need significant amount of money and feel that the amount you can get with an unsecured loan will not suffice, you know what to turn to.
4. Longer Borrowing: Not only do secured loans offer higher borrowing limits but also extended periods for repayments. These loans can last up to 20 years, which is something you cannot find in unsecured loans. However, it is my duty to highlight to you the fact that although longer borrowing may mean lower monthly repayments, the ultimate amount you end up paying is quite high.
Friday, 15 November 2013
Wednesday, 13 November 2013
You must have heard about different types loans like logbook loans and such loans, all of which have something discerning them from one another. While these loans have a limited radius, secured loans encompass a much greater spectrum. In fact, many of these loans you have heard of are actually secured loans. How? See, secured loans are nothing very technical. I should not have too much trouble explaining you the basic concept. When you take up a loan, and in return, pledge something as collateral for the loan, you have secured the debt. This makes this loan a secured one. Now the lender does not have too much risk associated with giving you the loan, as defaulting could automatically result in seizure of whatever it is you kept as collateral.
Take example of your logbook loans, when you take up this loan, your car serves as a medium of securing the debt. If you fail to meet your obligations towards the loan, you will find your car seized and sold eventually. Thus, when you apply for a logbook loan, you are securing your debt and assuring the lender about your creditworthiness. This is why most of the times secured loans attract relatively lower interest rates than their unsecured alternatives. However, you must understand that credit ratings still play a major role. This is because if I default on a secured loan, the lender would have to recover the amount by selling the collateral. However, by this time if the collateral is worth less than the amount borrowed, the lender would be faced with a difficulty. Plus, it is never really favorable to resort to selling the borrowers security. Therefore, while we do possess the ability to secure these loans, this ability is not enough to land us just the loans we point towards. But, yes, secured loans ensure that the emphasis on the credit rating factor is not very high.