Cheap, secured, low rate loan?
Sometimes, there are situations where you would truly like to pay off debt and get your financial life into shape, but it just isn't possible because your creditors are nagging you and creating a great deal of stress in your life. One way to start over is with personal loans.
One type of personal loan that may appeal to you is the cheap secured loan, which is essentially a personal loan that runs at a lower rate of repayment. There are two types, secured and unsecured. The secured loan is one where a part of your assets are taken as collateral in order to ensure that you will pay back the given sum. This is especially true if you have a shaky credit history.
Your credit history may also determine whether or not you can get a low-rate loan. Secured low-rate loans are usually only available to those who have a good credit rating, but even if you are in debt, there is a low rate loan for you. The market for such loans is extremely competitive right now, and with a bit of searching, you can find the one that's right for you. However, if you have bad credit, you can still get a loan.
Some things to take into consideration when looking for such a loan include the lender (depending on whether you want to do it online or in a more established brick and mortar setting,) fees on your cheap secured loan, and, of course, the interest rate at which you're borrowing. If you borrow from an online source, remember that they tend to have lower overhead because they don't have brick and mortar establishments, but that they can be less secure than traditional sources.
Also think about how long you want to borrow for. If you are borrowing for a longer time, the interest tends to compound more quickly, meaning that you will end up paying more than you started with, possibly again jeopardizing your credit score.
Secured loans are different from unsecured loans and offer lower interest rates, so search for a comparison service that pulls the lowest rates on the amount you want to borrow. Rates today can range from as low as 6.0% to over 10%. The difference between cheap loans and regular loans is the interest rate. Because cheap loans usually provided to borrowers who have more credit history, they tend to have a lower interest rate than other unsecured or personal loans.
When you are applying for your loan, have several financial documents handy in case the company asks, and if you are doing it online, make sure your internet connection is secure enough that none of your personal data gets stolen in the transaction process.
When you are paying off your cheap secured loan, make sure to look at the small print of the products you're considering. Some low rate loans charge extra to pay the loan off before the agreement expires, so check carefully and choose the loan provider that doesn't charge you for paying beforehand.