A Bad Credit Secured Loan - It's a Good Thing

A bad credit secured loan is a good thing.

We live in a credit based world. It seems these days that you can't do anything unless you have good credit. A lot of time you can't even rent an apartment without good credit. What happens when you need a loan for school or that new car cause yours finally fell apart?


Think about a bad credit secured loan.

Well let's start by tell you a normal lender loan is called an unsecured loan. This is where they look at your credit score and approve you for the amount that you need and you have the check in hand as you walk out the door a few days later.


A bad credit secured loan is used when your credit score is blemished.

The lender doesn't trust your score completely but can see that you have a few things on there that are still in good standings. This is when they are going to ask you for collateral that cost around the same price of the loan to make sure that should you not pay they are safe because they can auction off whatever it is that you are putting up to recoup their losses.


Usually they will use your home or your car for this purpose.

This is also their way of making sure that you don't default because no one really wants to lose their home to foreclosure but it does happen to the best of us too. If you default you are going to have them coming for a car repo or house foreclosure.


If you know you are going to miss a payment then make sure that you call them.

It is better to try to work something out then have more issues come up like losing your only job because the lender repo's the car.

As bad as it sounds to have to take out a bad credit secured loan it is a good way to start to rebuild your bad credit. Although it can be dangerous because you can lose more, you are going to be able to use the loan to pay off your other debt.

Every payment will slowly bring your credit score back up to where it needs to be. Please make sure that you really need the loan before you start to make your move towards the bank.


Make sure that you know exactly what the loan is for and if the lender askes then tell him why.

You need to be honest with them if you want them to help you to get the loan. Make sure that you know exactly how much money needs to go to your goal of the loan. Also plan out what is going to happen to the rest of the money so you know what you are doing and what you are spending.

Usually, most banks do not get involved with bad credit secured loans.

They feel that they only need to deal with those with outstanding credit scores and have a lot to lose should you default. Since your APR will be higher it is best to look around at the different vendors out there and see who has the best percentages and how many months the loan is based out of.

Do your research. Most lenders are willing to give you the information over the phone as well as making it available on the net.

To discover more information about secured loans have a look at Instant Cash Advance

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