Why secured personal loans are better than unsecured loans
When you are shopping around for a quick personal loan, you will basically run into two types of loans. You can choose from either secured personal loans, like car title loans, or unsecured loans. While some of the ways in which they differ might not matter, there are other points that will make a huge difference in the way you look at personal loans. It can get pretty confusing, but this article is intended to help you make the choice that’s best for you when applying for secured personal loans.
Secured Personal Loans
Let’s start by understanding the benefits of secured personal loans, since they are usually the best deal. To secure a personal loan only means that you trade something you have of value to the lender in a way of securing the loan. In other words, it’s a type of collateral loan. In the case of a personal loan, however, you do not give over your actual asset. For instance, if you use your vehicle to secure a car title loan, you do not give up your car. You only give over the title to your car until the loan and fees are repaid. In the case of a house, you don’t give your house over to the lender, but only the deed to the house. So if you sign over an asset to a lending company, what do you get in return? First off, you have more flexibility in regards to loan amounts. You can take a larger amount of money if you are securing it with something you own. Secondly, since it is less risk, you can get better interest rates. The time you have to pay back secured personal loans can also be longer.
Personal Loans Not Secured
If you take out a loan without securing it with an asset, it is an unsecured loan. An example of an unsecured loan would be a credit card purchase. You don’t give the credit card company anything to secure the loan. On this type of loan the interest rates are high to match the level of risk.
Now that you know the difference between secured and unsecured loans, you see why car title loans are one of the best solutions when in need of instant cash. And when looking for car title loans in riverside there’s only one lender you should turn to – Call us now (951) 384-2329 or apply online, and our experienced staff will help you get the cash you need.