Secured loans are often less expensive and easier to apply for than unsecured loans. Quite simply, this is because the lender has some assurance that they will not lose money on your loan. If you default on a secured loan, the lender can legally seize or repossess whatever property you have used as collateral and resell it.
Where can you find collateral? There are many options!
Assets. Real estate is one of the most common assets used as collateral. If you have a home or condo, you can use this to secure a loan, even a larger loan. You can also use land, cars, boats, and other large pieces of property to secure a personal loan.
Stocks and bonds. If you own bonds and stocks, some lenders will allow you to use these assets as collateral.
Business possessions. If you own your own business, you may be able to use current profits, future profits, warehouse inventory, and any business property you own (including equipment) as collateral.
Life insurance. If you have life insurance, some lenders will allow you to borrow against this or use this as collateral.…
Thanks to a bad economy, lenders are running scared. Even though there are some signs of economic recovery, currently most lenders are not lessening any credit requirements for most personal loans. When many people defaulted on their loans last year, many lenders tightened requirements, making it harder for folks with dings on their credit to qualify for most loans – especially unsecured loans. Now, even though the economy is recovering slowly, demand for loans is low (that means that fewer people are borrowing). Despite this, lenders are not necessarily making it easier for people to secure loans. At the same time, they are not making loan requirements more demanding.