If you think your credit is beyond help, think again. Secured loans may very well be the answer to your credit problems. See how secured loans work and what it might mean for you as you rebuild your credit.
There are two basic types of loans - secured loans and unsecured loans. Most loans are secured large. Banks and lending institutions want to be sure of their financial investment is protected. The best way to be sure that you will repay the loan amount is to be assured that you will lose something if you do not - your home or car, for example.
Unless you have an extraordinary credit, you will probably have trouble getting an unsecured loan. But by taking some steps to a secured loan may well encourage lenders to give you a loan even if your credit history is less than perfect.
If your goal is to restore credit, talk to your bank or lender about how you can get a small loan. You may be able to take a small loan or moderate, while leaving enough money on deposit to cover the loan. Seem a waste of time? It will give the bank security they need to justify the loan offer you while giving you a chance to show your commitment to make payments on time. If you choose this route, remember that your role is to make payments on time, every time. If you keep your part of the agreement, you will have less trouble getting your next loan without going to such extremes to fix it.
Credit cards are only small loans that are repaid in monthly installments. Usually, the credit card companies offer credit cards and cardholder flashes on the map to get instant credit. Secured credit cards are a good way to start getting your credit back on track.
This nothing more than a secured loan, as security is cash. You deposit a certain sum of money to the card company. Then you can use this credit card, but only that amount. You still make monthly payments and once you've established that you will make your payments on time, you can renegotiate the terms.
Source: http://EzineArticles.com/73589
There are two basic types of loans - secured loans and unsecured loans. Most loans are secured large. Banks and lending institutions want to be sure of their financial investment is protected. The best way to be sure that you will repay the loan amount is to be assured that you will lose something if you do not - your home or car, for example.
Unless you have an extraordinary credit, you will probably have trouble getting an unsecured loan. But by taking some steps to a secured loan may well encourage lenders to give you a loan even if your credit history is less than perfect.
If your goal is to restore credit, talk to your bank or lender about how you can get a small loan. You may be able to take a small loan or moderate, while leaving enough money on deposit to cover the loan. Seem a waste of time? It will give the bank security they need to justify the loan offer you while giving you a chance to show your commitment to make payments on time. If you choose this route, remember that your role is to make payments on time, every time. If you keep your part of the agreement, you will have less trouble getting your next loan without going to such extremes to fix it.
Credit cards are only small loans that are repaid in monthly installments. Usually, the credit card companies offer credit cards and cardholder flashes on the map to get instant credit. Secured credit cards are a good way to start getting your credit back on track.
This nothing more than a secured loan, as security is cash. You deposit a certain sum of money to the card company. Then you can use this credit card, but only that amount. You still make monthly payments and once you've established that you will make your payments on time, you can renegotiate the terms.
Source: http://EzineArticles.com/73589
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