Bank Secured Personal Loans

Do you need money for something like a vehicle, mortgage, home repair, repayment of bills or any other personal expense? If so, you may want to investigate bank secured personal loans. A secured loan is one where you will put up collateral, which is usually the deed to a home or the title to an automobile. There are some basic requirements you must meet to get this type of loan, but a secured loan is easier to acquire than an unsecured loan because of the fact you are putting up collateral to lower the risk to the lender.

A vehicle loan can sometimes be secured by the title of the vehicle being purchased. The bank would put a lien on the title, which means if you did not pay the loan the bank would repossess your automobile. For the average new automobile, the term of the loan for many borrowers is 60 months. Of course the term depends on what kind of monthly payment you can afford, many people don't care to stretch the loan out that long especially if they can handle higher payments and wish to pay off the loan as soon as they can. For vehicle loans, collateral and credit are both important factors. Not only will your credit determine approval, but also your interest rate.

Another type of aforementioned personal loan is a mortgage loan. Mortgage loans are used to by homes. The lender puts a lien on the house title until the mortgage is fully repaid. In the case that the borrower did not pay the loan as specified, the home could be repossessed and sold by the lender. With mortgage loans, you can get grace periods, equity loans and refinancing that may help you if you need funds or need to lower your monthly payments.

Individuals wishing to invest may take out a stock hedge loan. This is a securities loan where the stock is hedged against loss by the lender with the use of options or other ways of minimizing risk. Yet another type of personal loan is a pre-settlement loan. This is a loan that is given if you have been awarded a settlement in court and are waiting to receive it. There are certain criteria that must be met in this case including the type of lawsuit.

For any type of bank secured personal loan, it helps to know your credit score and what is on your credit report. Good credit will get you a better chance of approval and better interest rates. If you find your credit is poor, there are non-profit organizations like Consumer Credit Counseling who can help you set up debt repayment plans and counsel you on how to improve your credit so you can get the loan you need. It is usually a matter of paying off debt that is showing on your report and building new credit through various avenues such as credit cards from major companies or even department stores.

The application process for bank secured personal loans is fairly straightforward. Usually you will need to be a member of the bank (or credit union) where you are applying for the loan. They will need you to submit an application along with certain verifications such as your income and proof of your collateral. The loan officer will pull your credit report and review it as well along with the rest of your information, then give you either a loan approval or denial. If you are denied for a loan of this type the lender should explain to you why you were not approved so you can take care of the issue.