| If you need money now, but have been repeatedly | | | | estate, it's called a foreclosure. In either case, the |
| turned down for unsecured personal loans, you may | | | | lending agency has the right to sell your property in |
| still be able to get the cash you need with a secured | | | | order to recover their loan. |
| bad credit loan. A secured loan is one in which you | | | | While autos and real estate are the most common |
| offer something as 'collateral' to guarantee your | | | | types of collateral, some lenders will lend money with |
| repayment of the loan. If you don't repay the loan | | | | jewelry, coins or other collectibles or other types of |
| within a specified period of time, the lender has the | | | | vehicles. Most often, if you secure a loan with an item |
| right to take possession of the collateral and sell it to | | | | like jewelry or collectibles, the lending agency will take |
| recover their money. Secured loans are designed to | | | | possession of the item until the loan is repaid. |
| help those with poor or no credit get the loans that | | | | How to find a secured loan if you have bad credit |
| they need. Additionally, because the security deposit | | | | Many lenders - banks in particular - don't deal in any |
| (another name for collateral) guarantees that your | | | | sort of secured loan other than second mortgages. |
| lender will be able to recover his money - most lenders | | | | Other institutions deal almost exclusively in secured |
| will extend loans with lower interest rates than the | | | | loans. Finance companies that deal in secured loans |
| same loan with no security. | | | | can be found in your phone book, newspaper, and |
| The most common types of collateral are real estate | | | | increasingly, online. Shop around and compare interest |
| or automobiles, though it can be anything that is equal | | | | rates on loans and the terms of repayment with |
| or greater value than the amount that you borrow. In | | | | several different lenders. You'll find many internet sites |
| most cases, you don't give up physical possession of | | | | that let you request a loan rate quote from multiple |
| your car or home - you can go on driving it or living in it | | | | lenders at once. |
| as long as you continue making your payments on the | | | | Once you've submitted a request for a loan quote, |
| loan. Instead, you sign a note that gives the lender a | | | | you'll be contacted by representatives from several |
| legal right to the title or the deed to your car or home. | | | | companies and can get a good idea of what each can |
| If you default on the loan - don't make the payments | | | | offer you in terms of interest and other finance |
| that you've agree to make - then the lending agency | | | | charges and fees. Choose the best one for your |
| can take possession of your property. If it's an | | | | needs, and apply for the loan. It's that easy. |
| automobile, it's commonly called repossession. For real | | | | |