A secured loan is any loan that is secured on your home or
property. Secured loans are more easily accessible to those with a
poor credit record. This means that persons who are self-employed,
or who have recently changed jobs, or who have adverse credit (ccjs,
arrears, defaults, etc.) can take out a secured loan.
If you're a homeowner, you may get a lower rate through a secured
loan using your property as security. If you borrow money using a
mortgage as security you are agreeing that the lender can claim the
mortgaged property if you fail to keep to the agreement. The risk to
the lender is reduced so the interest rate offered is lower. This is
why secured loans tend to be cheaper than unsecured loans and other
forms of borrowing. The lender has the added benefit of security,
which provides protection in the event of your inability to repay.
You can borrow larger amounts and repay over a longer period. The
amount available usually ranges from £3,000 to £50,000,
although
some lenders will consider lending more. If you wish to borrow a
larger amount or if you require a longer period in which to repay
the loan, secured loans may be the most suitable for you.
You can consolidate more expensive borrowings into a single much
cheaper monthly payment. You may choose to take out a secured loan
in order to consolidate debts and replace high-interest loans with a
low-rate loan. The loans being consolidated may include higher
purchase loans, unsecured loans and credit cards.
Before you take out a secured loan, make sure that you can afford
the monthly repayments. Also, read the loan agreement carefully and
pay particular attention to the rate of interest required, the term
of the loan, the repayments required and the total amount payable.
If you fail to repay the loan, the lender may repossess your
property or home and sell it to repay the loan. Your home is at risk
if you do not keep up repayments on a mortgage or other loan secured
on it.
© Copyright 2005, Bwalya Mwaba writes for the Secured Personal
Loans website. To apply for a secured personal loan online, just
fill out a simple form at: http://www.secured-personal-loan.org.uk/
Tuesday, August 30, 2005
Monday, August 29, 2005
Bad Credit Doesn't Rule Out Unsecured Credit!
Many people believe that because of their bad credit, unsecured
credit cards are not available to them. While it may be more
difficult, there are options for people with bad credit who
want an unsecured credit card to build their credit or have
available for use in an emergency. While a secured credit card
is the most commonly recommended option for people with bad
credit, unsecured credit cards ARE available - even for those
with the worst credit.
Bad Credit: Unsecured Credit Cards vs. Secured Credit Cards
One of the easiest ways to get a credit card when you have bad
credit is to opt for a secured credit card. With a secured
credit card, you deposit money in a bank designated by the
credit card company to serve as a 'security deposit' - an
assurance that they'll get their money if you default on
payments. Depending on the lender, that deposit might be equal
to your desired credit limit, or slightly higher or lower. A
security deposit of $300, for instance, might get you a $150
line of credit with one company, a $300 line of credit with
another, and a $400 one with yet a third. The interest rate is
generally competitive, since the company has a guarantee of
getting its money if you don't make payments.
An unsecured credit card requires no security deposit. A bad
credit unsecured credit card will often have either a high APR
(annual percentage rate), high fees, or both. How do the two
stack up against each other? Here's a comparison from two
actual credit card offers that are sitting on my desk as I
write:
Secured Credit Card
Security Deposit: $250
Annual Fee: $35
Setup Fee: $35
APR: 15.40%
Credit Limit Increases: $100 increments, each require $100
deposit
Bottom Line: It will cost you $370 to maintain a $250 credit
limit for the first year, with at least $250 up front, at an
APR of 15.40%. You'll have $170 available credit upon receipt
of your card. You'll have to put up an additional $100 every
time you want to increase your credit limit.
Bad Credit Unsecured Credit Card
Annual Fee: $48
Setup Fee: $29
Participation Fee: $72 (annual, billed at $6 monthly)
Program Fee: $95 (one time fee)
APR: 9.9%
Credit Limit Increases: $25 (per increase of $100, at their
discretion)
Bottom line: It will cost you $244 for the first year, all of
it billed to your credit card on your first statement, to
maintain a $250 credit limit with an APR of 9.9%. You'll have
$72 credit available upon receipt of your card.
In the long run, while a bad credit unsecured credit card may
cost you more, you won't be tying up your money up front.
Either card will help repair your credit as you make payments
on time and regularly, but the unsecured card has an APR that's
almost 5% lower. You're the only one who can decide which is the
better option for you - but it makes sense to weigh all your
options before you decide that your only way to have a credit
card is with a security deposit.
@ Copyright 2005 - Bill A Smith
About The Author: Bill A Smith is a credit counselor for
http://www.americreditservices.com/ Feel free to visit our bad
credit help center at
http://www.americreditservices.com/bad-credit/
===================================================================
Debt Elimination Tips, Learn how to put all the money you're wasting
each and every month (Paying Interest) To Work for You, Subscribe to the Debt Elimination Tips Newsletter.
credit cards are not available to them. While it may be more
difficult, there are options for people with bad credit who
want an unsecured credit card to build their credit or have
available for use in an emergency. While a secured credit card
is the most commonly recommended option for people with bad
credit, unsecured credit cards ARE available - even for those
with the worst credit.
Bad Credit: Unsecured Credit Cards vs. Secured Credit Cards
One of the easiest ways to get a credit card when you have bad
credit is to opt for a secured credit card. With a secured
credit card, you deposit money in a bank designated by the
credit card company to serve as a 'security deposit' - an
assurance that they'll get their money if you default on
payments. Depending on the lender, that deposit might be equal
to your desired credit limit, or slightly higher or lower. A
security deposit of $300, for instance, might get you a $150
line of credit with one company, a $300 line of credit with
another, and a $400 one with yet a third. The interest rate is
generally competitive, since the company has a guarantee of
getting its money if you don't make payments.
An unsecured credit card requires no security deposit. A bad
credit unsecured credit card will often have either a high APR
(annual percentage rate), high fees, or both. How do the two
stack up against each other? Here's a comparison from two
actual credit card offers that are sitting on my desk as I
write:
Secured Credit Card
Security Deposit: $250
Annual Fee: $35
Setup Fee: $35
APR: 15.40%
Credit Limit Increases: $100 increments, each require $100
deposit
Bottom Line: It will cost you $370 to maintain a $250 credit
limit for the first year, with at least $250 up front, at an
APR of 15.40%. You'll have $170 available credit upon receipt
of your card. You'll have to put up an additional $100 every
time you want to increase your credit limit.
Bad Credit Unsecured Credit Card
Annual Fee: $48
Setup Fee: $29
Participation Fee: $72 (annual, billed at $6 monthly)
Program Fee: $95 (one time fee)
APR: 9.9%
Credit Limit Increases: $25 (per increase of $100, at their
discretion)
Bottom line: It will cost you $244 for the first year, all of
it billed to your credit card on your first statement, to
maintain a $250 credit limit with an APR of 9.9%. You'll have
$72 credit available upon receipt of your card.
In the long run, while a bad credit unsecured credit card may
cost you more, you won't be tying up your money up front.
Either card will help repair your credit as you make payments
on time and regularly, but the unsecured card has an APR that's
almost 5% lower. You're the only one who can decide which is the
better option for you - but it makes sense to weigh all your
options before you decide that your only way to have a credit
card is with a security deposit.
@ Copyright 2005 - Bill A Smith
About The Author: Bill A Smith is a credit counselor for
http://www.americreditservices.com/ Feel free to visit our bad
credit help center at
http://www.americreditservices.com/bad-credit/
===================================================================
Debt Elimination Tips, Learn how to put all the money you're wasting
each and every month (Paying Interest) To Work for You, Subscribe to the Debt Elimination Tips Newsletter.
Sunday, August 28, 2005
The First Step To Getting Out Of Debt: Make The Commitment
These days, getting into debt is easy.
Unfortunately, getting out of debt is not so simple for most
people. But you can do, if you go about it the right way.
The first - and by far the most important step - to getting out
of debt is to MAKE A COMMITMENT!
Personally, I spent years telling myself how much I wanted to
get out of debt. But then something would always happen - a big
expense, a change of jobs, you name it.
And even though I really wanted to get out of debt, I never
made any real progress. Then one day I finally got so
frustrated I said to myself:
"It's now time to do WHATEVER IT TAKES to get myself completely
out of debt!"
And for the first time since I got myself into debt (by maxing
out all of my credit cards trying to start a business) I
finally figured out the true "secret" to getting out of debt:
making the commitment!
So, if you haven't already made a commitment of your own, do it
right now. Decide you're going to do WHATEVER IT TAKES to get
yourself out of debt...and start doing it!
How long will it take you to get out of debt? If you're like
most people (including myself not long ago), too long!
How To Take Action
Once you make this commitment, it's time to take action.
Write down exactly how you plan on getting out of debt. Here
are some questions to ask yourself while developing your plan:
- How can you save money each month?
- What expenses can you eliminate?
- How much more money can you use to pay off your credit card
bills faster?
- How can you make some extra money?
- Have you contacted your creditors to request a lower interest
rate?
- How can you change your spending habits?
- Have you considered professional help - credit counseling,
debt negotiation, bankruptcy - to find out all of your options?
- Are you really committed to getting out of debt?
- When do you want to be completely debt free?
It's a great feeling being completely free of credit card debt.
But it won't start happening until YOU decide to make it happen!
© 2005 Debt-Tips.com
About The Author: Kris Bickell is the owner of Debt-Tips.com, a
helpful site for consumers struggling with credit card debt. For
tips on getting out of debt, repairing your credit, saving
money, and making extra money online, sign up for the free "Get
Out Of Debt Faster" email course at:
http://www.Debt-Tips.com/course.html.
===============================================================
Learn How To Get Out Of Debt, Using Only The Money You Already Earn And Not A Penny More! Learn how to put all the money you're wasting each and every month (Paying Interest) To Work for You!
Click Here For: Total Debt Elimination!
Unfortunately, getting out of debt is not so simple for most
people. But you can do, if you go about it the right way.
The first - and by far the most important step - to getting out
of debt is to MAKE A COMMITMENT!
Personally, I spent years telling myself how much I wanted to
get out of debt. But then something would always happen - a big
expense, a change of jobs, you name it.
And even though I really wanted to get out of debt, I never
made any real progress. Then one day I finally got so
frustrated I said to myself:
"It's now time to do WHATEVER IT TAKES to get myself completely
out of debt!"
And for the first time since I got myself into debt (by maxing
out all of my credit cards trying to start a business) I
finally figured out the true "secret" to getting out of debt:
making the commitment!
So, if you haven't already made a commitment of your own, do it
right now. Decide you're going to do WHATEVER IT TAKES to get
yourself out of debt...and start doing it!
How long will it take you to get out of debt? If you're like
most people (including myself not long ago), too long!
How To Take Action
Once you make this commitment, it's time to take action.
Write down exactly how you plan on getting out of debt. Here
are some questions to ask yourself while developing your plan:
- How can you save money each month?
- What expenses can you eliminate?
- How much more money can you use to pay off your credit card
bills faster?
- How can you make some extra money?
- Have you contacted your creditors to request a lower interest
rate?
- How can you change your spending habits?
- Have you considered professional help - credit counseling,
debt negotiation, bankruptcy - to find out all of your options?
- Are you really committed to getting out of debt?
- When do you want to be completely debt free?
It's a great feeling being completely free of credit card debt.
But it won't start happening until YOU decide to make it happen!
© 2005 Debt-Tips.com
About The Author: Kris Bickell is the owner of Debt-Tips.com, a
helpful site for consumers struggling with credit card debt. For
tips on getting out of debt, repairing your credit, saving
money, and making extra money online, sign up for the free "Get
Out Of Debt Faster" email course at:
http://www.Debt-Tips.com/course.html.
===============================================================
Learn How To Get Out Of Debt, Using Only The Money You Already Earn And Not A Penny More! Learn how to put all the money you're wasting each and every month (Paying Interest) To Work for You!
Click Here For: Total Debt Elimination!
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