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