Do you have too many monthly bills? Are your finances in need of an overhaul?
Most people think that getting an unsecured loan is the best option because they wont have to risk the loan on their home. However, if you take a closer look, you will normally find that a secured loan can be a better option.
The amount you are allowed to borrow usually depends on the equity in your home. Secured loans are always easier to obtain, more flexible in their terms and carry lower interest rates with a larger choice of repayment periods than unsecured loans. And with most good companies there are no upfront legal, survey or other fees.
So, the opposite is generally true for unsecured loans. They are generally more difficult to obtain and have quite high monthly repayments with very little flexibility in how much you can pay back and when. Also, if you have a less than perfect credit history, an unsecured loan will most probably not be offered to you as loan companies see you as a higher risk. Applying for one may put a record of a loan application on your credit history which could make it worse.
Secured loans are beneficial for many reasons. First of all, they are much easier to get because of the security provided by your home. If you require a large loan or find yourself in a shaky financial situation you can more easily get the loan you need through secured financing and will probably be approved.
Secondly, due to the fact that a secured loan has less risk for lenders that provide them you will be offered better terms than for an unsecured loan. For example, they tend to have longer repayment periods, higher loan amounts and fantastic interest rates. A secured loan can provide you with many options. Once you have the cash in your hands you can pay off debt consolidation loans or a car loan, or apply it to a home renovation or to fund other important expenses.