Have you been saving up for your dream home but can’t seem to get there? Do you want to study abroad to complete your higher education? Are you someone who loves adventure and wishes they could have money to travel to exotic places?
If this is you, then a Secured Personal Loan is definitely in the cards. However, don’t feel daunted by the task of securing a personal loan. About 8 million Aussies took out a personal loan in 2018. That’s a lot of people!
So, if you’re interested in finding out everything you need to know about a Secured Personal Loan, keep on reading!
What is a Secured Personal Loan?
The first question that has its answer is, what is a Secured Personal Loan? These types of loans are credited to you by the lender after you provide a security interest. This could be an asset you own, whether a car or even your home.
Interestingly, your security asset can also be the item you wish to invest in with the borrowed money, for example, a car! So, there are various options for you on the table, and it’s not at all complex to understand.
Are you eligible for a personal loan?
Are you in severe debt? Can you not afford to go on holiday this summer because of a lack of funds? Even if you have a low credit score and are also in debt, it doesn’t mean that you can’t avail of the facility of a personal loan!
So, there aren’t any hindrances like that. However, you should be a minimum of 21 years of age when you try to apply for a personal loan. The loan maturity should not be past the day you hit 65 years old.
Hence, you will have to look into how much money you can earn monthly and how you can repay it. There are multiple flexible repayment plans on the market to find the perfect fit for yourself.
How can you increase your chances of getting a Secured Personal Loan?
- Apply for how much you can afford: if you want your loan to be approved, you should only take the amount you know you can repay as a loan. Even lenders look into your income and history to ensure that they will be getting their money back.
- Increase your savings with time: In the time leading up to your loan application, you should start saving to have tangible proof of your financial competency to show to the lender. When you can save money in a disciplined way, it shows that you are a responsible individual.
- Pay off all debts: Before you apply for a new Secured Personal Loan, you should take care of any other outstanding debts that you might have. This way, lenders will also feel more comfortable giving you the amount you have asked for.
- Have a co-borrower or guarantor: You can also ensure that your loan is approved to get a co-borrower or a guarantor. You are much better off to be approved for a joint personal loan. In addition to this, you might even be privy to better interest rates.
Wrapping it up
Securing a personal loan can be a scary task, but sometimes you have to make difficult decisions to achieve your dream life. Hence, apply for secured personal loans today and see how your life changes over time. All the best, mate!
