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secured loan gives you access to funds for a wide variety of purposes.
There are many reasons why people take out a secured loan – from home improvements, university fees, exotic holidays, or simply to consolidate debt. But is a secured loan right for you?
What can I use my loan for?
Of course you are free to spend your loan on whatever you wish, but it is advised that if you take out a loan you do so responsibly. The majority of people who take out secured loans do so to invest in their future, improve their quality of life or to clear existing credit and reduce their monthly outgoings.
Common examples include:
A new car
Cars, like houses, are expensive to buy outright and many people use a loan to spread to cost into more manageable payments.
Home improvements
Sometimes you need to improve your home – a broken boiler, a leaking radiator – and you just don’t have the spare cash. Improving your home, such as adding a conservatory or building an extension, can also add value on your property in the long term.
Further study
If you have hit a turning point in your life and wish to retrain, switch careers, or simply study a subject you love, than a loan can help pay the cost of course fees.
Consolidating debt
If you have credit cards or store cards, than there’s a chance you are struggling with debt. The more credit and store cards you have, the more likely you are paying various high interest rates. By paying your existing debts off with secured loans, you have just one interest rate to pay. If you shop around, you can find the lowest interest rate available. Use an internet price comparison site to get an idea of what’s available.
Holidays
You could even take a well deserved holiday. It’s your money so it’s up to you how you decide to spend it. As long as you have budgeted that any secured loans you take out are repayable, than the choice is yours.
How much can I borrow with secured loans?
Firstly you must prove that you fulfil the following checklist before you can take out secured loans. You must be:
- A UK resident
- Earning a regular income
- Over 18 years of age
- A homeowner
If you meet the criteria, you can usually borrow anything from £3,000 to £500,000 (as long as you can pay it back over a fixed number of years). There will be an interest rate to pay. You will be credit checked and, if the loan is agreed, you'll sign Terms and Conditions for the loan. The money is then usually transferred to your bank account.
When looking for a loan, shop around and compare what's on offer from several providers. Compare the amount of interest you'll be paying back and the monthly repayments.
Loansum is a specialist broker that searches the market to find a low rate secured loan that’s right for you. Call us on Freephone: 0800 848 8046 to find out how we can help you or email help@loansum.co.uk.
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