Secured loans
There are two kinds of personal loans, secured and unsecured. Secured loans are backed by some form of collateral such as an automobile, a home or property.
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They are usually for longer periods of time and for larger amounts than unsecured loans. Secured loans are easier to qualify for because the lender takes on less risk with the presence of collateral. Because of the lowered risk they generally have lower interest rates |
Secured loans are best for borrowing large amounts, people with bad or imperfect credit history and those that want longer repayment periods.
A higher credit score will give you a lower interest rate. Obtain a copy of your credit report from any of the major reporting agencies. Be sure you get a copy with your FICO score. Correct any errors and make sure all your bills are current, this will save you money. Lenders will use your FICO to determine your eligibility and your interest rate
