Did you know that you could qualify for a secured personal loan with bad credit, even if you’ve recently filed for bankruptcy, lost your home to foreclosure or had your car repossessed?
What Are Personal Loans?
Personal loans are any loan that is awarded directly to an individual, rather than a business, and used to cover personal expenses. Personal loans are especially popular with people who have financial problems, and typically marketed as “bad credit equity loans“.
There are two distinct types of personal loans: secured personal loans and unsecured personal loans. Read on to better understand the differences between these types loans, and to find out which type might work best for you.
Secured Personal Loans
A secured personal loan is a loan in which the borrower leverages collateral or assets to gain access to money. If the loan is not paid back, that collateral then must be forfeited to the lender. Popular forms of collateral that people leverage in this way include cars, stocks and bonds, houses, valuable possessions or real estate.
Secured personal loans are very similar to collateral loans, in fact, they are virtually identical, except that collateral loans can be taken out by businesses, corporations and other non-personal entities, while personal secured loans refer explicitly to loans taken out by individuals. Bad credit secured loans are especially popular with people who have run into financial trouble in the past, mostly because they can be received without having to run credit checks, allowing individuals with severe financial problems to get a loan without having to pay penalties, put up more money as down payment or pay a higher interest rate because of their previous mistakes. Continue reading “How to Get a Secured Personal Loan with Bad Credit”