| When it comes to getting a UK personal loan | | | | loan. The bank lends you money to buy a house |
| you have two choices. You can choose to get | | | | and they use the house as a way to back up |
| an unsecured loan or you can choose to get a | | | | the loan. If you do not make your mortgage |
| secured loan. | | | | payments, the bank can seize your home. |
| | | | |
| An unsecured loan is simply a loan you get | | | | Or you can think of a secured loan as a pawn |
| based on your good name and your credit | | | | shop that lends you the money you want but |
| rating. Often the interest rates are low the | | | | lets you still use the goods you pawned! |
| higher on an unsecured loan and on a secured | | | | |
| loan because the risk is higher to the | | | | So which one is the right one for you? It's a |
| lending institution. If, for some reason, you | | | | tough decision to make. In most cases, a |
| are unable to pay back the loan and the | | | | secured loan will get you a better rate, so |
| lending institution does not get any money | | | | you may prefer that. |
| back. However, your good name and your credit | | | | |
| rating are potentially ruined. | | | | However, perhaps you don't have any assets |
| | | | available, or you don't want to risk the |
| On the other hand, a secured load is a low | | | | seizure of certain assets if you are unable |
| you get when you put up some assets. The | | | | to make payments. In this case, you may not |
| advantage of a secured loan is that you often | | | | mind paying a little more for the benefit of |
| get more money at a lower interest rate for | | | | having an unsecured loan. |
| longer repayment period that you would with | | | | |
| an unsecured loan. This is because you have | | | | Both unsecured and secured loans are good |
| some assets to backup your loan. The lending | | | | options to have when you are doing your |
| institution prefers this kind of loan because | | | | financial planning. You can use them to |
| if you find yourself unable to make payments, | | | | consolidate your outstanding bills, leverage |
| they can see your assets as an alternative | | | | your house investments, or get the things you |
| form of payment. Because the risk to them is | | | | need and want. And, with the choices between |
| diminished they are able to provide you with | | | | unsecured and secured loans, you have the |
| more attractive loans at a better rate. | | | | benefit of being in total control of your |
| | | | financial destiny! |
| You might think of a mortgage as a secured | | | | |