When you try to get a personal loan or cash advance from the banks, the loan officer may try to recommend you to take secured personal loans instead. These require you to place down some collateral in order to secure the loan, and is usually used for borrowing a large $10,000 loan or when you have poor credit or income. It is not a bad idea, because unsecured personal loan rates are much higher and you end up losing a lot of money on the interest fees. Lenders will also limit the maximum amount you can borrow with no collateral, or may check your employment records.
To borrow $10,000 with no hidden fees, the easiest way is to get secured bank loans with easy approval. Many people worry that the banks are trying to cheat and repossess their cars or homes, but this happens when you take too big a risk and borrow too much money. You can arrange for longer deadline installment loans, so that you can slowly take your time to pay off the loan and have cheaper interest fees through the regular monthly payments.
There are several advantages in taking $10,0000 installment loans for 24 months. Firstly, your FICO credit score matters a lot less here. It may also be the only way to get a large loan while unemployed and having no income. You can even get long term secured loans with up to 60 months installment payment schedule. There is no way you can get a long deadline personal loan with no job income otherwise.
Many people with bad credit think that they can only get no hidden fee loans from online lenders when they are declined by banks. Instead of a cash advance, why not consider borrowing against the value of your car or home for cheaper rates? Some people cannot get over the fear of losing their assets used as loan collateral, and end up having to put up with very high risk unsecured loan rates of 300% APR or more. In fact, these are even tougher to pay off and many borrowers end up with a lot of debts.
The typical secured personal loan rates from banks range 6% to 25% APR, which is much lower compared to payday loans or unsecured cash advance. The actual APR depends on the lender and type of asset you put down as collateral. For example, you can pledge your home to get the best secured loan APR while your car title will be less favorable due to its depreciating nature.
Besides the APR, the value of the collateral you pledge will determine the maximum secured loan amount you are allows to borrow. Since homes or land are usually worth much more compared to vehicles, you need to use the appropriate asset for borrowing large secured loans. For large long term secured loans, even a tiny reduction in APR can help to save you a lot of interest fees.
And thats not all the advantages of secured bank loans. It is easier to negotiate for payment options because lenders try to accommodate the demands of borrowers with collateral. The loan officers may also offer a detailed loan plan based on your income and financial status so that you have no problems with the monthly installment amount. The payment date may perhaps be increased for borrowers with no job currently and needed more time to pay back the money.
Most borrowers use $10,000 secured personal loans to finance a new business venture, pay for home improvement projects, weddings, or to pay off existing debts with very high interest rates such as credit card bills, private student loans.
We notice that borrowers of secured loans from banks are much less likely to default because their homes or assets are at risk. This creates a more responsible borrowing attitude and helps prevent you from borrowing over your limit. For example, even if some title lenders are willing to give $50,000 long term secured loans, you may be worried about your ability to pay back since you are unemployed at the moment. Circumstances can thus guide you to borrow lesser with less risks.