Wednesday, 16 December 2015

Is a Secured versus Unsecured loan better?

Want to find out about the benefits of a secured loan versus an unsecured loan? We examine and explain how they work here so that you can make an informed decision!
What is a secured loan?
It means putting something that belongs to the borrower - a house, other assets or even the car itself up as collateral in case they default the loan.
How does having a security attached to a plan help?
With something at stake in case of default, chances are that repayments will be paid on time. That makes lenders more confident about issuing the loan and better terms for the contract like a lower interest, longer tenures and even larger amounts!
So which one should I choose?
It really depends on your situation; do you have assets that you can put up as collateral and are you willing to forfeit that item if you default on your payments?
Why not look at The Smarter Finance Company for some professional car financing help so that you can choose the right financing plan for your situation?

Is a Secured versus Unsecured loan better?