Finding the Best Secured Loan for Your Money

If you're looking for a secured loan, there are several options available to you. Most banks and finance companies will issue a secured loan to people with good or bad credit? since the loan is secured, there is a much lower chance of them losing their money if the borrower is unable to repay the loan.

Let's take a closer look at secured loans, examining how they work and some of the different types of loans available from different lenders.

A matter of collateral

A secured loan is referred to as "secured" because it has an object (known as collateral) offering security to the lender in the form of a guarantee that they will get their money back even if the borrower doesn't repay it.

This security enables lenders to offer a secured loan to a wide variety of individuals, even if they have less than perfect credit.

Traditional loans

Traditionally, a secured loan is offered by a bank or finance company to allow individuals to purchase specific items, to pay bills, or to repay old debts.

The bank or finance company will require specific collateral depending upon the intended use of the secured loan? some items, such as houses or automobiles, serve as their own collateral, whereas some other uses of secured loans (such as debt consolidation) require additional collateral which is usually worth more than the loan amount.

These loans can have quite varied terms? auto loans are traditionally for five years, whereas a house loan (also known as a mortgage) may last for 20 years or more. Some smaller loans may even have a turn of six months to a year.

While the loan is being repaid, the bank or lender charges interest on the remaining amount, with interest rates that are agreed to when the loan agreement is signed.

Online loans

An alternative method of applying for a secured loan has been growing in popularity for several years, and shows little sign of stopping? taking full advantage of the digital age, online lending companies provide the loans that people need with the convenience of researching and applying for the loan from the comfort and privacy of home.

Online loans, like traditional loans, tend to require collateral? with most online loans the collateral is usually either related to the loan or is an object with an exceptional resale value.

The most common online loans are homeowner loans, in which the equity of the owner's house serves as collateral; with sufficient equity, even individuals with bad credit can get the loans that they need without the extreme interest rates of some traditional lenders.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

In The News:

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.consumernews.com.au/news/finance/home-loans/536/westpac-cuts-fixed-home-loan-rates-by-up-to-11-pct-points/cid=1257001978ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNH2o2njQ7ziSylNsDG6FvP063FMGQimg src=http://news.google.com/news?imgefp=12u0GoZPLb0Jimgurl=www.consumernews.com.au/images/news/536/headers/westpac-home-loans-main.jpg width=80 height=60 alt= border=1brfont size=-2Consumer News/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theage.com.au/national/fixed-loan-rates-down-by-up-to-16-20081013-4zvj.htmlcid=1257001978ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNEqoaAlt2ONgM2uWBf3hFG_xEFmsgFixed bloan/b rates down by up to 1.6%/abrfont size=-1font color=#6f6f6fThe Age,nbsp;Australianbsp;-/font nobr3 hours ago/nobr/fontbrfont size=-1As the popularity of fixed home bloan/b products continues to decline, Westpac, ANZ and National Australia Bank yesterday dropped their fixed rates by as much b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://business.smh.com.au/business/banks-offer-lower-fixedrate-loans-20081013-4zw0.htmlcid=1257001978ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNGTKdoCfnttWZoaIjFhBBH06LQr8ABanks offer lower fixed-rate bloans/b/a font size=-1 color=#6f6f6fnobrSydney Morning Herald/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601081%26sid%3Da0.UOvvOJXfU%26refer%3Daustraliacid=1257001978ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNGmEAS4eo09kKk08KpqeqtWm_RewgWestpac Banking Cuts Its Fixed Interest Rates for Home bLoans/b/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theaustralian.news.com.au/business/story/0,28124,24492475-20142,00.htmlcid=1257001978ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNG7Q-H9OmHkMlX-k3zO0jCr7GWN6wWestpac and ANZ cut fixed bloan/b rates/a font size=-1 color=#6f6f6fnobrThe Australian/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.100mortgages.org/20081013/mortgage-rate-cuts-westpac-anz-and-national-australia-bank/cid=1257001978ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNFZsa3OT3dfmM5azPOhVfUfa0xcswnobr100 Mortgages/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.smh.com.au/business/demand-for-fixedrate-loan-products-down-20081013-4znu.htmlcid=1257001978ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNGZU9u0TSCAL5HNDqB_7A-VbkJkSgnobrSydney Morning Herald/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257001978hl=ennobrall 57 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.chron.com/disp/story.mpl/business/buggs/6052705.htmlcid=1255326638ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNFlT0_tPie0AB-yr6m77RCishU6LgCrisis has nothing to do with Reinvestment Act/abrfont size=-1font color=#6f6f6fHouston Chronicle,nbsp;United Statesnbsp;-/font nobr10 hours ago/nobr/fontbrfont size=-1quot;Most of the bloans/b made by depository institutions examined under the CRA have not been higher-priced bloans/b, and studies have shown that the CRA has b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.indystar.com/apps/pbcs.dll/article%3FAID%3D/20081011/OPINION01/810110392/1002/OPINIONcid=1255326638ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNEKTg7vy8EyEc_pOg1uWhRMV1lX3QbLoans/b to low-income led to current crisis/a font size=-1 color=#6f6f6fnobrIndianapolis Star/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.postbulletin.com/newsmanager/templates/localnews_story.asp%3Fz%3D23%26a%3D365962cid=1255326638ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNEEE0DCqjuBZFzdv5iT6dXktFeWAwMany factors contributed to crisis/a font size=-1 color=#6f6f6fnobrPost-Bulletin/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.annistonstar.com/opinion/2008/as-editorials-1013-editorial-8j12s2053.htmcid=1255326638ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNGKBia5cQthCk2MsAkVG1zLEpGIsQDon’t blame those at bottom: The causes of this crisis/a font size=-1 color=#6f6f6fnobrAnniston Star (subscription)/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.boston.com/bostonglobe/editorial_opinion/editorials/articles/2008/10/11/subprime_scapegoatscid=1255326638ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNF0rQOCyaQ6uWkn9Euo0dhj0VzgOgnobrBoston Globe/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.ajc.com/blogs/content/shared-blogs/ajc/bookman/entries/2008/10/11/update_on_polls_blame_for_the.htmlcid=1255326638ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNHGTldUyQcf4jtNYhj1g5Bxe4iGegnobrAtlanta Journal Constitution/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255326638hl=ennobrall 43 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLD29797320081013cid=1257240439ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNE4yjVGnnfiBnw0giXjhOqUnSnxkwBayerLB Hungary unit suspends issuing FX bloans/b/abrfont size=-1font color=#6f6f6fReutersnbsp;-/font nobr5 hours ago/nobr/fontbrfont size=-1F: Quote, Profile, Research, Stock Buzz), has suspended the issuance of foreign currency bloans/b as market volatility has made exchange rate movements too b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.portfolio.hu/en/cikkek.tdp%3Fk%3D2%26i%3D15986cid=1257240439ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNHeOcNZq8zNagQ6AbFLfMKK8pE6UQHungary#39;s MKB puts FX lending on hold/a font size=-1 color=#6f6f6fnobrPortfolio/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLD31943720081013cid=1257240439ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNGT-9s6WH_LeHxT0SjBejXv92gN2wUPDATE 1-BayerLB Hungary unit suspends issuing FX bloans/b/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257240439hl=ennobrall 3 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.wreg.com/Global/story.asp%3FS%3D9168540cid=1257272158ei=sXbzSNPKNabU6gPrgfWDAQusg=AFQjCNG3F6yD7yhYEgZpNzYZTfxW7wOiuABlack farmers consider new suit over denied bloans/b/abrfont size=-1font color=#6f6f6fWREG,nbsp;TNnbsp;-/font nobr3 hours ago/nobr/fontbrfont size=-1AP - October 13, 2008 9:04 AM ET PINE BLUFF, Ark. (AP) - A former US Department of Agriculture secretary says black farmers who couldn#39;t get bloans/b from the b.../b/font/div/font/td/tr/table
loans - Google News

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