Secured Loans - Every time you want to avail money from the lender, you are allowed to borrow funds, but with a promise of paying the back in time. And to ensure the repayments, the loan provider may require some asset to secure the borrowed amount and it called “secured loan”.
An asset always backs the loans, which are secured, and it can be borrower’s home or car. It works as the collateral for the loan where the borrowers are giving the authority to the lender to take possession of their asset if they do not repay the loan.
Secured loans in the UK are considered as the best funding source to secure large money. Since the loan is secured, the lender has no risk in funding the people with such big amount. Further, the lender also thinks that home or car is generally a safe guarantee because the borrower will do everything to pay back the money.
For the last few years, it has been good news for the “borrowers with bad credit scores”. The online lenders have started sanctioning large loans like these secured ones with especially targeting the young salaried individuals, who have high earning potentials. It means the lenders consider the income status of the borrowers instead of their credit history while giving secured loans for bad credit and CCJ’s people.
The reason can be anything of your bad credit score such as you have not paid the utility bills for long time or your credit card payment is pending. Multiple debts are also the reason for which you are paying high interest rates. The important thing is that your past credit errors are affecting your chances of guaranteed loan approval during the tricky financial period.
To get secured loans, people with low credit scores can approach a reliable person with good credit rating, and who can agree to become their guarantor. The person will be equally responsible for the repayments along with the primary borrower.
Thus, any individual can avail secured loans even with bad credit history. Remember, the interest rate may jump up slightly. It generally happens when the borrowers have applied for the home loan where the security is mandatory.
Every lender welcomes the employed individuals to borrow funds without any hindrance. The salaried individuals usually have a good credit profile and a steady amount in the deposit account. Allowing them secured personal loans is not a risk at all. Same sort of financial assistance is also provided to the self-employed professionals.
Individuals, who are “self-employed”, are those who have a professional qualification and using it for their commercial gains. Doctors, lawyers, chartered accountants, consultants, and architects are the examples, who generally come into the class of self-employed professionals. Lenders have no hesitation in giving them secured loans even if they have no guarantor to back them. For example, the doctors want to set up their own clinic and they need more money. Since they have steady monthly income, the lenders definitely favour them due to their low risk profile.
The loan companies are giving more favour to the self-employed people such as they can avail loans online with quick decision. Submitting the loan application can be done on the lender’s website with minimum paperwork and the lender instantly disburses the desired funds to their authentic bank accounts.
Borrowing funds should be accepted as the serious responsibility, particularly when you are seeking for short term and long term funding. Things are not easy, but not impossible either. You may be satisfied to see the advantages of secured loans and start the application procedure. But you cannot ignore the disadvantages of the loans too.
Metro Loans strives hard to bring the secured loans more in favour of its prospective borrowers. We urge to all the UK people to think of us as their financial partner because we have dedicated ourselves to their better future. We are ready with best possible deals.