Different Types of Secured Personal Loans that You Can Consider
Two factors dominate your life: need and demand. This is different from economic life, where it is about supply and demand. This is unfortunate for us, because we often need money, but none will be available to us, particularly if you we have bad credit or if we need money fast. However, one option that is available is found in secured personal loans. There are a few different secured loans available and you need to find the one that is right for you in order to make the best financial decision. So what types of secured – or semi-secured – loans are available to you?
Secured Home Personal Loans
These are the best type of loan if you want to borrow a reasonably large sum of money. Essentially, the money is borrowed against the equity in your home. This means that, if you don’t pay the money back, your lender can force you to sell your home and get their money back. While these constructions are popular, they are quite hard to get if you have bad credit, mainly because they are for such high amounts.
Title Loans
Another option is the title loan. This is a loan that is secured against a title of a vehicle. This can be any vehicle from a car to a personal airplane and from a motorcycle to a boat. So long as the title is completely clear, you can lend against it and if you don’t pay it back, your vehicle will be repossessed. These loans are available for people with bad credit and they are often paid into your account within no more than 48 hours.
Vehicle Equity Loans
Vehicle equity loans are different from title loans. These loans are designed for people who still have finance outstanding on their vehicle. This means that, rather than borrowing against the value of their vehicle, they are borrowing against the part of the vehicle that they already own. This is quite similar to a home equity loan.
Payday Loans
Payday loans are semi-secured loans. This is because they are not secured against a type of property, but rather against your next paycheck. The lender will agree with you that you pay the money back as soon as your salary is paid into your bank account, and this debit will take precedence over any other debits coming out of your account on that same day. Payday loans are some of the most expensive loans out there, mainly because they are such short term (sometimes as short as 10 days).
Whatever financial product you decide to apply for, it is very important that you consider your options first. It is always best not to borrow any money, but sometimes situations arise in which this is simply not an option. If you find yourself in that situation, you need to find an option that you can afford and that will actually help you out of your difficulty and not drop you into even more of a tight spot. Secured personal loans may just be what you have been looking for.