Discussing The Popularity Of Secured Loans And Some Startling Statistics That Corroborate It

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.

4 Reasons Why You Should Opt For A Secured Loan

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.

Bad Credit Loans - A Video Review

For those who have a bad credit history and looking for secured loan, check out this video:

Understanding What ‘Secured Loans’ Really Are

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.

Greetings! I am Tom Hargreaves

Hi guys, my name is Tom Hargreaves, and like most of you I am just another ordinary person, living an ordinary life that is constricted by financial limitations. Having recently gone through a period where I needed a secured loan, I was astounded to see the lack of information that is available on the web. We are all aware of what secured loans are, how they differ from the unsecured loans, and other such general stuff, but does any of this really help when you are out in the real world, trying to get a secured loan? What you need then is an adequate guide, which would hold your hand and walk you through the entire process of how it is done. This is exactly what I intend on doing here. The purpose of this website is to enlighten all you lost people, who know little or nothing beyond what secured loans are. Here, I talk about everything from why you should get a secured loan, to what to do in order to get one. I do not support or am endorsed by any provider and so, would not recommend any one of them. What I will do is put all the facts in one plate and present them to you as they are, leaving the ultimate decision solely in your hands. If you learn something new from my website, its purpose will be entirely fulfilled.