To this day, the process of getting a loan is sometimes a grueling affair. The problem is, people don't want grueling, they want simple, fast and easy. Unfortunately that's not always possible, and was even less possible back then, where every step of the approval process implied a trip to the local bank branch. Secured loans had always been much less of a hassle, but just like the other loans, you had to physically go to the branch.
Thanks to the Internet and the advances it has spurred, if what you're looking for is a secured loan, the process can be completed very quickly. The nature of a secured loan makes it easier both for you and the lender: you have an asset (usually a savings account or CD) that you authorize the lender to take hold of if you fail to pay off your loan. The result is that information that used to be crucial to determine whether or not you'll be able to pay off the loan is no longer that important.
All you actually need to provide is basic details about you, your job, and submit yourself to a security verification. The most important part of the transaction is providing the documents that state that the collateral is yours and is authentic, to make sure that the financial institution that's granting you the loan will actually be able to take possession of that asset if you don't pay for your loan in a timely fashion.
Some people are fervent critics of secured loans. They point out that it's foolish to borrow money against funds that are already yours, and that you could have used interest-free, as opposed to having to pay interest on that secured loan. While the argument might look iron-clad, there are a couple of circumstances where it no longer holds up that well. Here are a few of them.
1. You have poor credit. You don't want it to remain that way for the rest of your life, and you'd like to speed up the process of rebuilding your credit. The problem is, with your bad credit, the only lenders willing to grant you a loan are charging interest rates that you're not willing to pay. If you have savings, you can borrow against them, get better interest rates, and start rebuilding your credit right then and there by paying your installments on time.
2. You have no credit. Millions of people suffer from what is called the thin credit file syndrome, which means that their credit file is either non-existent or doesn't have enough information in it to produce a credit score. Unfortunately, in the eyes of the lending industry, no credit is almost the same as bad credit, as they have no information on which to base their decision. You can remedy that and start building a credit history with secured loans.
3. You have an emergency. Sometimes it's not even about your credit. You might have good credit and everything but you're suddenly faced with unplanned and urgent expenses that you must meet. It might feel uncomfortable depleting your emergency savings fund. You might also not want to cash out a CD and forfeit months of interest. In those cases, you can borrow against those funds and pay off the loan over time as your money continues to earn interest.
As you can see, secured loans do have their uses. They're easy to get. They're equally quick to get disbursed. They carry low interest rates. And they can help improve your financial situation. In the end, they're a very good financial too to have at your disposal. - 15432
Thanks to the Internet and the advances it has spurred, if what you're looking for is a secured loan, the process can be completed very quickly. The nature of a secured loan makes it easier both for you and the lender: you have an asset (usually a savings account or CD) that you authorize the lender to take hold of if you fail to pay off your loan. The result is that information that used to be crucial to determine whether or not you'll be able to pay off the loan is no longer that important.
All you actually need to provide is basic details about you, your job, and submit yourself to a security verification. The most important part of the transaction is providing the documents that state that the collateral is yours and is authentic, to make sure that the financial institution that's granting you the loan will actually be able to take possession of that asset if you don't pay for your loan in a timely fashion.
Some people are fervent critics of secured loans. They point out that it's foolish to borrow money against funds that are already yours, and that you could have used interest-free, as opposed to having to pay interest on that secured loan. While the argument might look iron-clad, there are a couple of circumstances where it no longer holds up that well. Here are a few of them.
1. You have poor credit. You don't want it to remain that way for the rest of your life, and you'd like to speed up the process of rebuilding your credit. The problem is, with your bad credit, the only lenders willing to grant you a loan are charging interest rates that you're not willing to pay. If you have savings, you can borrow against them, get better interest rates, and start rebuilding your credit right then and there by paying your installments on time.
2. You have no credit. Millions of people suffer from what is called the thin credit file syndrome, which means that their credit file is either non-existent or doesn't have enough information in it to produce a credit score. Unfortunately, in the eyes of the lending industry, no credit is almost the same as bad credit, as they have no information on which to base their decision. You can remedy that and start building a credit history with secured loans.
3. You have an emergency. Sometimes it's not even about your credit. You might have good credit and everything but you're suddenly faced with unplanned and urgent expenses that you must meet. It might feel uncomfortable depleting your emergency savings fund. You might also not want to cash out a CD and forfeit months of interest. In those cases, you can borrow against those funds and pay off the loan over time as your money continues to earn interest.
As you can see, secured loans do have their uses. They're easy to get. They're equally quick to get disbursed. They carry low interest rates. And they can help improve your financial situation. In the end, they're a very good financial too to have at your disposal. - 15432
About the Author:
Jeremy Beckwith is an authority on the cd secured loan. Get valuable financial information by visiting his finance blog.