How to Find a Secured Loan

A secured loan is a loan that requires some form of collateral, like a house. The benefit of a secured loan is that it usually carries a lower interest rate because of the collateral asset backing it. There are several places you can find a secured loan. Read on for some.

Things You'll Need

• a need for a secured loan

Instructions

1. Look online. In era of the information super highway, you can find anything online including financial lenders. That doesn't always mean you should use the lenders you find online. When looking for a secured loan online, make sure the company is legit. Search for reviews, certifications like the Better Business Bureau or Good Housekeeping Seal of Approval and federal insurance affiliations like the FDC. Make sure to compare costs and fees in addition to the interest rates.

2. Use your local bank. Many local banks take a very conservative approach to lending. As a result, they can offer highly qualified applicants a very good interest rate on a secured loan.
   It helps to have checking or savings accounts with your local bank when you apply for a loan.

3. Use a loan broker or mortgage broker. A broker has access to secured loans from many, many banks and can offer you the best rates available. You'll probably pay higher fees with a broker but, for a lower interest rate, it's worth it.

4. Join a credit union. A credit union is like a bank, but slightly more exclusive. Many credit unions serve specific groups, like teachers. Though many credit unions are open to anyone. Once you've established a good banking history and can prove you are not a risk, you'll have access to good interest rates on a secured loan.

Tips & Warnings

• Have sufficient equity in your home if you plan to use it as collateral on a secured loan.

References

• Felitec: How to Find a Secured Loan