All you need to know about Secured Personal Loans

Secured personal loans are offered to individuals with poor credit, no credit, or have unsteady work history. These personal loans are often accompanied by lower interest rates, flexible payment plans and often allow you to borrow a larger sum of money.

However, before obtaining a secured personal loan, you must offer collateral if you are unable to make any payment of that loan during the agreed-upon payment period.

Due to poor credit status or unstable work history, borrowers are considered a high risk, and are required to ensure assets in case of default payment. Failure of payment may result in the seizure of personal assets including vehicles, property, or other tangible goods that are valued higher than the balance due on the loan.

Before applying for a personal unsecured loan, consider the following:

• How much money do you need?
• What type of payment plans can you adhere to?
• What is your credit score & credit status

- None, Poor, Good

• Average Percentage Rate (APR)

- True rate of interest paid on any financial agreement

• Read all fine-print about penalties and payment plans