Day: February 16, 2018

How to secure personal loans for bad credit.

You can secure Personal loans for bad credit using collateral whereby you pledge an asset of value which is of equal value or more value than the loan and in case you fail to repay the loan, the collateral will be sold. These loans help people with bad credit score to be able to access loans. The main advantage is they have a lower interest rate than other loans due to the fact that the risk is reduced by the pledged collateral. With the secured personal loan for bad credit using collateral, there is no limit to the amount of money you borrow. You can borrow as much as you want as long as is equal to the value of the collateral. These loans also help to improve your credit score when you repay on time.

You can use the following as collateral to secure a personal loan for bad credit:

  • Certificate of deposit.

In this case, a certificate of deposit is used as collateral for borrowing. This is whereby your savings are held and you are not allowed to withdraw until you repay your loan. This is good because when you repay the loan, your credit score with your bank will improve.

  • Auto loans.

Secured auto loans can be used when you want to use your property such as car or house as collateral.  The auto loan in refinancing.

 Where to find secured personal loans:

With collateral, you can find a loan very easily. However, to avoid falling into the wrong hands, below are places to consider when you want a personal secured loan.

  • Credit unions

Credit unions are organizations which are non-profitable and have members that have something in common. You can join a credit union whereby you offer your collateral as security and they give you a loan as their member. Compare different credit unions and join the one which is most favourable to you. When you join a credit union you will have favourable terms of payment and lower interest rates. Check here.

  • Online

In today’s world, the internet is a platform where may activities take place. Lending and borrowing is not an exception. There are many organizations and individuals online who will be willing to offer you a secured personal loan. However, you have to research, consult and look at the customer reviews on a lender before choosing the lender you want. This will ensure you find the best and avoid getting conned.

  • Asking friends and relatives.

Friends and relatives will give you a trusted lender who they trust because they are the people you believe are the most about you. They can also refer you to lenders that they once borrowed secured personal loans with a bad credit.

It is very easy and more beneficial to secure personal loans for bad credit than using unsecured loans. Therefore, there is no need to worry when you have a poor credit score as long as you have a property that can be pledged as collateral.  Click here for more information: