Did you know that you can qualify for a low interest secured loan with bad credit, even after filing for bankruptcy, losing your home to foreclosure or having your car repossessed?
Everyone wants the lowest interest rate possible on their loan, but it’s not always easy to secure one, and that’s especially true for people with poor credit.
To get considered for a low interest secured personal loan, you’ll have to do a bit of work, and offer lenders a bit of flexibility. Here are three things to keep in mind as you shop for loans:
You Need Collateral
Secured loans are provided at a lower interest rate because they’re “secured” by collateral (your personal assets). Lenders can charge you lower interest rates because they are not as worried about losing everything if you fail to pay off your loan – if that happens – they will just take your collateral into possession.
Depending on the value of your collateral, your credit rating, your debt to income ratio and all of the other regular factors, you may be able to qualify for an extremely low interest rate loan.
Here’s how it works:
- You sign up for a loan, using the title of your house or car, or piece of property that you own as collateral
- You give the lender the title to whatever asset you’re using as collateral to secure the loan, and in return, the lender gives you money
- You start paying back the loan each month, or however often the loan repayment are structured, until the loan is fully paid off
- Once the loan is fully paid off, the lender returns your title to you and you part ways
The part where things go wrong is if you missed loan payments, made payments late, or defaulted on the loan entirely. If you were to have defaulted on the loan, the lender would have kept your title and taken possession of the house, car or property that you used as collateral.
You May Need to Shop Around
Everyone advertises low rates, but some companies offer better rates than others. To find the lowest interest rate available for a secured loan, you might have to call around a bit.
This is especially important if you have good or great credit, because different lenders will offer loans at different interest rates, so you’ll need to ask around to look for the best deal. Lenders are more willing to offer deals and reduced rates for people with good credit too, so don’t be afraid to try your hand at negotiation if you have a good credit score.
If you have bad credit, you may not find as much value in shopping around since all the interest rates are likely to be about the same. Poor credit scores reduce your options and opportunities, so you may have to take what you can get.
Consider a Shorter Repayment Schedule
Typically, lenders want to get their money back as soon as possible so that they can loan it to another customer, while borrowers want to stretch payments out as far as possible so they can reduce the amount they have to pay each month, but this isn’t always the case.
Smart borrowers will pay their loans off as quickly as possible to reduce accumulating additional unnecessary interest or other fees, and that’s something that you should look into. If you’re willing to pay a higher monthly rate, you’ll increase the chance that you qualify for a low interest secured personal loan, since the lender will be able to turn that money over to another customer sooner, meaning he won’t need to make as much off of your loan.
Reducing lender risk is the best way to reduce your interest rate, so do everything you can to assure the lender that you’ll be making payments in full, on time, and as quickly as possible.
Car Capital Financial
Car Capital Financial provides low interest secured personal loans in the form of vehicle title loans (cars, trucks, RVs, boats, motor homes, airplanes, motorcycles, etc.).
We have over 15 years of experience providing affordable title loans to clients throughout Southern California, and we can offer a loan on any vehicle that has a title.
We don’t need to run credit checks, so no matter how bad your credit might be, it will not affect the affordability of your loan, your interest rates or your repayment schedule. Title loans are issued based on the borrower’s ability to repay the loan.
But better yet, we will get you the money you need without requiring that you leave the vehicle with us, in a garage, or stop driving it for personal use.
To get a safe, reliable and affordable car title loan of your own in as little as 30 minutes, call us now at (888) 500-9887.