Secured Personal Loans Presents:
Are Secured Personal Loans Safe?
Even though the economy is going through a rough patch, there's a lot of offers out there for getting loans. They're on T.V., on the net...almost everywhere you look, you can find adverts that sound too good to be true. The rising amount of lenders have increased competition, and if you've got a house and need money, a secured personal loan might just be the answer. But are they safe, and what should you look out for?
The concept of a secured personal loan is that you put your house equity up for collateral against the amount you're borrowing, plus interest. Unlike unsecured personal loans, the interest is a lower rate and the repayment schedule is longer (compare 1-15 years versus the secured loan of 5-25 years). The main reason people choose to get a secured personal loan is that they need a large amount of money. Debt consolidation and heavy reconstruction are a few examples.
The positives of getting a secured personal loan are that the more equity you have, the higher credit score, the lower the APR and a shorter repayment period. The negatives are that the loan uses variable interest rates and possible repossession of your home if you default. The interest rates change according to the economy, which means your monthly payments can increase or decrease- there's no fixed amount. If you get behind on payments, you could lose your house.
When you're in the market for a secured personal loan, whether in person or online, shop wisely and take your time to decide. Don't skip over the small print, but read the loan carefully as there could be hidden costs or conditions. The easiest way to compare is to look at the TAR (Total Amount Repayable) which is the loan plus interest plus fees. The reputation of the company is another factor to consider, since there are many con-companies that aren't legitimate.
About The Author:
Sarah Conner is Financial Consultant for Chums Finance UK, Please visit the best option for Secured Loans, Personal Loans.
Article Source: http://EzineArticles.com/?expert=Sarah_Conner
Secured Personal Loans
For more information about personal loans please visit High Risk Personal Loans
The concept of a secured personal loan is that you put your house equity up for collateral against the amount you're borrowing, plus interest. Unlike unsecured personal loans, the interest is a lower rate and the repayment schedule is longer (compare 1-15 years versus the secured loan of 5-25 years). The main reason people choose to get a secured personal loan is that they need a large amount of money. Debt consolidation and heavy reconstruction are a few examples.
The positives of getting a secured personal loan are that the more equity you have, the higher credit score, the lower the APR and a shorter repayment period. The negatives are that the loan uses variable interest rates and possible repossession of your home if you default. The interest rates change according to the economy, which means your monthly payments can increase or decrease- there's no fixed amount. If you get behind on payments, you could lose your house.
When you're in the market for a secured personal loan, whether in person or online, shop wisely and take your time to decide. Don't skip over the small print, but read the loan carefully as there could be hidden costs or conditions. The easiest way to compare is to look at the TAR (Total Amount Repayable) which is the loan plus interest plus fees. The reputation of the company is another factor to consider, since there are many con-companies that aren't legitimate.
About The Author:
Sarah Conner is Financial Consultant for Chums Finance UK, Please visit the best option for Secured Loans, Personal Loans.
Article Source: http://EzineArticles.com/?expert=Sarah_Conner
Secured Personal Loans
For more information about personal loans please visit High Risk Personal Loans
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