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Why use a secured loan

Updated on April 13, 2015

Many reasons to use a secured loan

Mortgaging a home or home improvement, buying a car, a boat or other recreational vehicle all fall under secured loans and always have been. It you do not fulfill your agreement on paying on your home mortgage, the lender can foreclose on your home. The same goes for a vehicle. If you are not making the payments, then it is repossessed. Whatever the collateral is to use to secure the loan the lender will consume control over that property. When a large amount of money is loaned out to the borrower, the financial company wants to know that there is some security for them if you falter on that loan.

Other types of secured loans are for those borrowers with not the best credit history, or bad credit. They need money to help pay off other loans and get out of debt. Being able to get a fast loan and use the loan wisely for the main propose of obtaining the loan, will help the borrowers get back on their way to improve their credit score. A secure loan is easier to obtain because there is less risk from the lender.

Usually the secured loan will have a lower interest rate then an unsecured loan because of the zero risk involved with the lender.

Common types of secured loans - Large or small loans

Many secured loans available for vacations or anything that the borrower needs for any purpose. Below is a list of the other type of secured loans.

  • Home loans
  • Auto loans
  • RV and boat loans
  • Consolidation loans
  • Bad credit loans

Difference Between Secured & Unsecured Loans

Guaranteed loan for the borrower - Guaranteed loan for the lender

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If there is, either a guarantee that the loan will be paid back or the property is available for the lender to hold as collateral. These loans are the best type of loan to get your credit history up to where it should be and relieve the stress of how you will be able to pay for your property and bills.

On PromoPro saves you money with online coupons. Their free service is offered to you, they also have a Loan Coupons page. Many different lenders are available with discounts on loans up to $50,000. One is Costco Finance and you have to be a member of Costco. The other ones only require a form to fill out get the best loan. Of course, thoroughly check out the companies before applying for a loan. With the listings on PromoPro, it makes it easy to get information about these businesses.

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© 2013 Sandy Mertens

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      Ben 2 years ago

      I agree that you need a secured loan.

    • profile image

      anonymous 4 years ago

      Going through this situation individual can easily acquire the required funds through the 12 month cash loans.

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      nicolalaris74 4 years ago

      Long term unsecured bad credit personal loans you are in a position to condition with any uncertainties without worrying about fiscal constraints. The application procedure is simple, as all the details required has to be filled up in an online application form.

    • profile image

      anonymous 4 years ago

      Long term loans no credit check is easy to derive and can be used to answer any short term fiscal crisis. The loans are perfect for the salaried individuals.

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      karollito 4 years ago

      When I take loan, I usually go for trusted loan companies like atrais kredits , quick loans, etc.

    • Scarlettohairy profile image

      Peggy Hazelwood 4 years ago from Desert Southwest, U.S.A.

      It's always best to get a secured loan to protect you and your property. Great tips!

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      Author

      Sandy Mertens 4 years ago from Wisconsin

      @marsha32: As long as your mother is making her payments, everything should be fine. But when something like this is out of your control (i.e. family member), it can be a bit stressful.

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      marsha32 4 years ago

      We actually have an unsecured loan on our van----but my mother has a secured loan using our van as collateral. Probably not a wise choice on our part but she was in trouble and needed help.