Secured Loans with Bad Credit

Did you know that as of 2017, there are only 20 percent of Americans who had a credit score range of 300 to 850? That means that only a few percent of the population has a good standing in terms of their credit.

That being said, only these people are the ones capable of applying for loans without hassle – and the other 80 percent? They’re stuck in finding ways how they can get financing either for their business or for their personal use.

People with bad credit usually fall on the bad side – with them not being able to secure the funding they need. But because of this fact, a lot of lenders adjusted; a lot of financial institutions tried making ways on how they can allow even people with bad credit get loans.

How Can People With Bad Credit Apply for Loans?

There are funding and lending companies who give these people a chance. Their options differ and it usually involves bringing a credit partner it; but there’s actually a better way than that.

For most companies, offering secured loans is their best way how they’ll be able to allow people with bad credit get and apply for secured loans. A secured loan is a type of loan where there’s a collateral involved – an asset or a property that will be between the lender and the borrower.

It’s a type of security for when the buyer fails to abide by the terms and the agreements, the lender can acquire and take the collateral in place.

So in technicality, banks and other financing and lending companies offer secured loans with bad credit clients. The amount that they’ll usually loan will be against the collateral – the amount will somewhat be close to what the value of the security is.

Would it Guarantee an Approval?

If you think that a secured loan guarantees approval, think again. Even if there’s a collateral, it’s still not a guarantee that the borrower will be approved of the loan. The collateral can increase the chances of approval, yes, but the lender would still have to do certain background checks.

So to finally answer the question, no, a secured loan to a person with bad credit is still not a guarantee. In the world of funding and financing, background checks and assessments are always the activity – a loan is never approved without the appropriate evaluation of the borrower.

Do you find it challenging to land an approval when you apply for a loan? Are you growing tired of constantly being rejected even if you’re applying for a secured loan? Don’t worry, we here at SoFlo Funding can help you.

At SoFlo Funding, you can land the loan you’ve been looking forward to even if you have a bad credit. Your bad credit can jeopardize your journey in being approved for a loan but with SoFlo Funding, we don’t judge. It’s not the only thing we look at.

For a secured loan for people with poor or bad credit, the things we’ll look at and evaluate includes:

• History with previous and other lenders
• Credit score and history
• The collateral that will be put in place
• Capability of repaying

We look at the credit score yes but at the same time, we’ll also check how you were with previous loans and your experience with other lenders. From there, we evaluate and check a borrower’s likeliness to pay the loan back.

What You Get With SoFlo Funding

Comparing what we offer from what other lenders and what other institutions do, our clients can enjoy a lot of perks for working with us. This includes:

Higher Loan Amounts

We can get funding for secured loans of up to $500K – it will still depend on what the collateral of your loan will be. Nevertheless, we’ll never give you shorter of what you’re expecting.