The Free Experts Guide to Secured Loans for Bad Credit!
Secured Loan Expert understand that there are times when unavoidable circumstances lead to a bad credit rating. However, we are also firm believers in giving consumers a fair shot at redeeming their credit ratings through secured loans. That is why we recommend secured loans for bad credit repair among consumers with established equity in their homes.
We have seen how powerful a secured loan can be for both long-term financing and credit repair. The strength of the secured loan is that it is offered against the equity in your home. What do we mean by that? We mean that you are able to secure financing by offering the equity in your home as collateral against what you borrow. As long as you make your loan payments as agreed, there is no need to be concerned about your home.
A secured loan is also a flexible funding tool that allows you to use the money for virtually anything. Where a primary mortgage can only be used to purchase a house, you can use a secured loan to consolidate high interest debts, make home improvements, start a new business, or even take your spouse on a once-in-a-lifetime holiday to celebrate your anniversary. The flexibility of a secured loan makes it one of the best financing options for British homeowners.
Cost of Borrowing
There are many reasons we recommend a bad credit home loan taken out against equity. At the top the list is what is known as the total cost of borrowing. The total cost of borrowing is the amount of money a consumer pays for the privilege of borrowing; it includes annual interest and all the fees and charges assessed by the lender throughout the borrowing and repayment process. It does not include principal.
It is important to understand the total cost of borrowing in order to secure the best financing package. A secured loan typically offers a lower total cost when compared to unsecured personal loans, credit cards and other types of financing. For example, you could get a secured loan at a rate of 7% as compared to a personal loan at a rate closer to 10%. Credit card borrowing can be even more costly.
The thing to be careful of with secured loans is that some banks make up for lower interest rates by charging excessive fees. The consumer needs to know what those fees will be up front, before accepting a loan offer. The lowest cost loans combine as few bank charges as possible with the best interest rate.
Other Important Things to Know
We hope you take the time to compare loan offers before choosing to accept one. Lenders loan at different interest rates and for different terms. Where the loan term is concerned, you should consider your options against your monthly budget. A longer loan term, like 25 years for example, will mean lower monthly payments for you. However, it also means you pay more in interest over the life of the loan. A shorter loan term reduces the amount of interest paid in exchange for higher monthly payments.
Other things to consider when comparing are representative APR, loan-to-value (LTV) ratio and maximum borrowing amounts. All of these factors play into what you are able to borrow and how much it will cost you.
If you need help to find the most suitable loan for your personal circumstances why not let our experts do the work. There is no charge for our professional advice and we have the technology to find the best deals from 700 loan options in a few minutes. Our experts will help you compare the best deals and decide on which is the most suitable for your needs. We can then prepare an effective application and submit it on your behalf so that your case has all the information the lender needs to make an informed decision.
In closing, we have one last bit of advice for you: be sure to address whatever circumstances caused your bad credit before taking on a loan. Failing to correct poor spending habits or other issues could result in you finding yourself in more serious financial trouble. Moreover, with a secured loan taken against the equity in your home, the last thing you want to do is risk losing your property because you cannot afford to repay.
We are the experts when it comes to secured loans for bad credit. Call Secured Loan Expert today for more information about how a secured loan could improve your financial situation dramatically.
Instantly compare 950+ of the UK's best secured loans
Rates from as low as 3.75%