| Secured bad credit loans used to be looked upon | | | | reason (although economies of shorter borrowing |
| with some derision in years gone by. Now they are | | | | times should also be taken into account). |
| becoming the norm, and we should be glad. Here are | | | | 5. Personal service. While the secured loan will involve |
| seven good reasons why we should all cheer up | | | | more procedures and will usually take longer, you are |
| about it! | | | | likely to get a more personal service than with an |
| 1. There is so much credit being offered and people | | | | unsecured loan, where the application process is |
| are increasingly finding that credit references are | | | | often as anodyne and faceless as one simple |
| being recorded as a matter of course. This should be | | | | application form. Most consumers like to be treated |
| taken as a good thing as it leads away from | | | | as real people than just numbers or prospects. |
| conventional lending by the banks and opens up a | | | | 6. The diversity of secured loans available. As well as |
| more diversified lending system for all of us which | | | | conventional secured loans for any purpose, specialist |
| covers a much wider market. | | | | plans for different types of loan have also grown up. |
| 2. Banks are therefore not the only source. Banks like | | | | Non-status loans, debt consolidation loans, and both |
| to have as much security as possible, so they can | | | | personal and business advances are examples. Special |
| afford to pick and choose whom they lend to. But | | | | plans will usually also exist if the property your loan is |
| having a 'one size fits all' approach is definitely not | | | | secured on is in some way different. For example, |
| good news for the majority of us, because we are | | | | brick and tile is the preferred form of construction, |
| all different. Knowing that banks can be this choosy | | | | but if your home is concrete based, or timber, or |
| means that we are free to go elsewhere. So in the | | | | even has a thatched roof special plans are there if |
| long run the laws of the market have provided us | | | | you seek them out. |
| with a greater variety of sources when it comes to | | | | 7. More circumstances are considered. Improvements |
| secured adverse or bad credit loans. | | | | in financial risk management assessment have meant |
| 3. Secured loans are usually cheaper - sometimes | | | | that lenders are prepared to consider secured bad |
| much cheaper - than unsecured loans. This is because | | | | credit loans where such a thing was not conceivable |
| of the risk aspect. If a lender knows that the loan | | | | in the past. The self-employed, in particular, are not |
| amount is tied into the borrower's property then he | | | | treated as they used to be, especially with the new |
| knows that the borrower has an extra commitment | | | | attitude towards self-certification. Three years of |
| to keep a roof over his or her head. Therefore the | | | | audited accounts are no longer automatically required |
| cost of borrowing through a secured loan is going to | | | | from those people who work for themselves. |
| be significantly less for that reason. Simply, the APR | | | | Defaulters, people with CCJs, IVAs and even |
| figure will be lower. This can be seen clearly on any | | | | discharged bankrupts are now regularly considered in |
| loan advertising material. | | | | today's changing world of finance. Increasingly people |
| 4. Longer repayment periods. Hand in hand with the | | | | take bigger financial risks, especially the |
| fact that the loan will be cheaper, the repayment | | | | entrepreneurial minded. The market is expanding to |
| period can usually be set longer and so the monthly | | | | take account of that, because it has to. |
| repayments will be significantly reduced for that | | | | |