Search:

An article on Finance and related topics

For additional information and special deals related to some of the items on this article, place your cursor over the double-underlined links. All information supplied by Kontera.com

Where Can I Get a Secured Loan?

By: Ben Needles

Secured Loans generally come from 3 places - You either get the loan from a traditional lender, like a bank, a nontraditional lender, like an organization dealing specifically in secured loans, or a small, local business, like a pawn shop. Each of these lenders has pros and cons, and each should be thoroughly researched (as with anything else relating to your finances) before you come to a decision about how to take out a secured loan.

First, a quick explanation of what a secured loan is: Secured loans are similar to normal, traditional (unsecured loans) - you find a lender, borrow a set amount of money, and you pay it back over time with an already agreed upon interest rate and payment plan. However, with a secured loan, you also have to bring an amount of collateral to the table. Generally, the value of this collateral needs to be greater than the money being lent. This collateral will be used as a security blanket for the lender - if you should decide to stop paying them, they simply take possession of the collateral, and sell it to cover the money you owe them. Again - this collateral is generally worth more than what you borrowed in the first place, so its not a good idea to default on a secured loan.

Getting a secured loan from a bank:

Banks are the most common place youd expect to get a loan - this is where most loans are handled. Car loans, mortgages, business loans, your local bank branch likely has employees who specialize in assessing risk and making lending decisions in all of these fields. Traditional banks, however, tend to have less experience (and confidence) in secured loans. They can be very helpful in a common secured loan situation, such as a second mortgage on your house (where the capital youve built up in your home serves as collateral), they are far less helpful if youd like to put up your dvd collection so you can buy a vespa. You get the idea. Banks are great at handling loans, and they handle the few secured loan situations theyll take much like they handle any other loan - there is a lot of paperwork, interest rates are generally reasonable, and theres a good chance theyll turn you down anyway. One great advantage to banks is that you can generally trust them. Read the fine print, of course, but you arent likely to discover youve gotten yourself into something too unfair.

Getting a secured loan from a dedicated lender:

Establishments dealing specifically in short term and non-traditional lending can be more helpful and more flexible in your search for a secured loan. These organizations are built around the business banks arent interested in taking, so they can be much more accommodating to your plans. Keep in mind, however, that the banks didnt want this business for a reason - and the lender youre now dealing with is more likely to hit you with unexpected fees and high interest rates. Make sure you read the fine print here - youre dealing with a business that is far less reputable than the bank, and occasionally theyre not afraid to try to pull something over on their customers.

Getting a secured loan from a pawn shop or other local establishment:

If you need quick money for a speeding ticket, or bail, or (heaven forbid) he latest tech gadget, you might try your local pawn shop. Theyre happy to appraise your valuables, hang onto them, and loan you an amount based on their appraisal. They can be quick and painless to deal with, but keep in mind - their appraisal is unlikely to be anywhere near what youd value your goods at, and they have no problem keeping your stuff if you dont pay them back in a timely manner. On top of that, since these loans are generally short term, youll often find yourself paying rates of 300% annually or higher. Not a wise financial move in the long run.

Whatever your needs, you can find a lender to accommodate you if youre willing to look. Make sure to shop around and do your homework, and youll come out on top.

Article Source: http://ezine-articles-planet.com

About the Author (text)

Mike loves learning and teaching about personal finance, and shares what he knows at his blog at credit-doctor.com

london estate agency

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Finance Articles Via RSS!

Additional Articles From - Home | Finance

Authors, Sign Up for a free account or learn more.

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Writers/Authors Submission Guidelines
Member Login
Submit Articles
Most Popular Articles

Publishers Article RSS Feeds
Terms of Service

Adsense Secrets 4 - Recurring Top 1% Commissions

Free Affiliate Training

Share This Page:

Site Information Link to Us
About Us
Site Blog
Contact Us
Privacy Policy
Multi Site Article Search
Links Directory

Sponsors from all over the web

Would you like your site listed here?

Is This Site Useful?
If you found this site useful, please consider buy the webmaster coffee and get a free link back to your site!

Thanks for your support!

Please Rate and Vote For Us: