Secured Loans for Bad Credit

One good thing about secured loans is the fact that a person’s credit score and standing would not be the only factor in the approval. Because there’s a collateral or a type of security on the line, institutions and lenders will most likely consider your application even if you have a bad credit.

Although credit scores are like the main thing most lenders will look at, pledging any type of property or asset can greatly increase the chances of your application being approved. That being said, we should never disregard our credit scores and our credit standings – it’s always going to be looked at.

Applying For Loans

When you apply for loans, most of the time, is not a question of how much you’re able to pay – but a question of whether or not you’re capable of paying. That’s the question most institutions and lenders ask.

That is mostly the reason why people with bad credit find it difficult or challenging to apply for loans. Their credit scores are the main thing that lenders look at because that reflects their ability or their inability to pay.

For secured loans, however, it’s different. Even if you have a bad credit and if you’re willing to put down a property or an asset of significant value, the credit score would most often be a smaller factor.

Where Can People With Bad Credit Apply For Secured Loans?

Most lenders often have their own secured loan programs and payment plans and terms. Who doesn’t want to obtain or acquire an asset? The most common places that offer secured loans for bad credit clients would be:

• Online Lending Facilities
• Funding Companies or Lenders
• Credit Unions or Credit Institutions
• Big National Banks as well as Smaller Banks

What’s the best option? It really depends on what you want to get. But to clarify things further, here are some of the advantages of each of them and their downsides as well.

Lower Interest Rates

Each of these institutions have their own backlashes and their advantages. If you’re in a hurry to secure or to get the loan that you’re looking to apply for, then going for banks and credit unions should not be your option. Although they have fairer interest rates for secured loans, they can take forever to release the funds.

The usual time for banks and credit unions to disperse and release the funds are anywhere between 60 to 90 days – and it’s sometimes longer than that.

Longer Terms and Fast Release of Funds

If you are looking to receive the funds fast and you’re looking at lenders and funding companies. The downside these have is that the interest rates are slightly higher than the usual rate, but it can be fair especially if there’s an asset or property on the line.

Choosing which option to go to can be difficult – and even if you have a bad credit, you should not worry about being approved because you’re applying for secured loans.

There are multiple institutions that you can reach if you are eager in applying for secured loans for bad credit clients. We here at SoFlo Funding are open to granting secured loans even for people with poor or bad credit.

We Help People With Bad Credit!

Do not be ashamed if you have a bad credit – it’s nothing you should take too seriously. Just like any other type of problem, having bad or poor credit is something that can easily be solved. It’s something that can be sorted and treated if you put in the time and effort.

But if you need to apply for a secured loan while you’re under bad credit, you can choose us here at SoFlo Funding! We’ve been helping a lot of our clients with personal loans, and even business loans even if they have a bad credit.