Pros & Cons of Secured Loans

A secured loan is one that uses the assets (belongings) of the borrower to ensure the repayment of the loan. In borrowing money against, for example, your home or car, the lender has less risk of you reneging on your commitment to repay. Should you fail to repay the loan or have too many delays in payments, the lender has the contractual right to your property. That ’s right, they own your belongings until you repay the full amount of the loan and interest.

Getting a secured loan is a great idea when you:

1. Have bad credit and cannot get an unsecured loan
2. Have a bad credit history
3. For whatever reason you are unable to be approved for an unsecured loan

Pros & Cons of a Secured Loans

• Fast approval based on your property ownership
• Lower interest rate
• Borrow at the value of your property
• Extended period for repayment

• You are at risk of losing your property
• Having to pay back the loan

source : http://www.loansnmortgages.co.uk