Using Assets to Secure a Loan

Jul 01

If you are looking for a loan and you are not sure what you can use as an asset, then perhaps you need to first check your most valuable item – your house. There are economic advantages to using your home as security for a loan; you tend to get a lower interest rate. Recently the value of our homes has risen again and more people are taking advantage of this to borrow money. It is an attractive option, with longer to pay the loans off, and lower monthly repayments. Borrowing money against your house can be a very affordable way to secure a loan.

If you have poor credit for whatever reason, you have a better chance of getting a loan if you put your house up as an asset. Lenders are getting more and more careful about whom they loan to, so if you have a house with equity in it then you can use this to get a loan.  Of course, you may decide you do not want to use your house as equity for a loan, particularly if you are looking for a short term loan. You may feel that you do not want to risk your home, or you may find you have negative equity and therefore are not eligible for a home owner loan. What then?

Well these days it is easier to get a loan if you can put down some sort of asset. So could you get a loan on your car for instance? Yes! There are many places where you can get a loan on your car. These are sometimes known as logbook loans. You get to keep the car while you borrow the money, and whether you are self-employed or have had credit declined before; there will be a lender for you. If you do not want to use your car as an asset to get a loan; perhaps you still have finance on your car or you just don’t feel that it is suitable for you, never fear. Many people have successfully got a loan on their jewellery or watch.

In much the same way pawnbrokers used to work, you can go online and tell companies like H&T Pawnbrokers about the item you want to be considered for a pawn broking loan. You are then sent a pre-paid envelope; you just put in the item or items, and post it back.   You get to accept the loan online, and you will receive the money that very same day. You can repay at any time, and you will have your valuables returned to you.

So, if you are searching for a loan, then you have a wide variety of options open to you. With some thorough research you can find the perfect loan for you.  Bear in mind that it is a sensible idea to assess and compare the various quotes to find the one that offers you the best interest rate and other terms pertinent to your loan agreement.  That way you can be sure that you will be able to afford to pay off the loan and will not incur any nasty surprises further down the line.