subject: Loans': Bad And Good Credit [print this page] Loans': Bad And Good Credit Loans': Bad And Good Credit
Everyone knows it is easier to qualify for a loan with good credit, and you can also get a lower interest rate on good credit as well. However, many who qualify for a low interest rate fail to look at other options, such as secured loans.
Secured loans, unlike unsecured loans, do not take your legal word only that you will pay back the loan, they actually take away your assets if you do not pay back the loan. The assets are agreed ahead of time, but they have to be equal to the amount of the loan. If you are certain that you can pay off the loan, you would not have to worry about your assets being taken away, but chances are, you will be enjoying a lower interest rate while you pay off your loan, which will save you a ton of money! Plus, with unsecured loans, if you can't pay them back, interest can still continue to accumulate, creditors will come after you, and your credit will be ruined, making it impossible to get another loan.
With bad credit or no credit at all, it is much more important to try for the secured loan since you will for sure be paying a very high interest rate since lenders feel they need to protect themselves with a higher interest rate against those they fear may not pay them back the full amount of the loan. If you have bad credit and have the time to improve your credit before getting a loan, that would be ideal. All you would have to do is use the credit card enough to ensure that you will be able to pay the required payments on time each month. Eventually, your credit will improve enough to get just about any type of loan you want.
The loans' choices to choose from that is right for you!
