Secured loan definition
You would probably agree with most Canadian residents that when you are in the market for a short-term or longer-term loan, you do not relish the thought of a credit check, especially if you know that you have a less than perfect credit rating.
You do not have to do a lengthy application process. One thing is for sure; you must complete your loan application and get it turned in for approval before you can get the money you need.
Never just want to seek a secured personal loan without becoming educated on the type of loans available. In Canada, there are two types of loans, secured and unsecured, and you must know the difference and which one fits our need and budget.
To obtain a secured loan, know the secured loan definition. You must have something of value equal to above the value of your investment. A valuable asset can be your car, your home, or some other valuable asset that you fully own. In the case of a secured loan, the lender of your secured loan holds the title to this asset until you pay off the secured loan in full. At this time your asset is released back to you fully.
If you allow your loan lender to hold your valuable asset and you fail to pay your obligation, the lender can confiscate this asset and sell it to pay off your secured loan debt.
When you need a higher loan value you may have no option then to apply for a secured loan and offer collateral equal to or greater than your loan amount.
A secured loan definition can take the form of a second mortgage or a home equity line of credit. These secured loans have a fixed rate of interest. Some of these types of loan offer a variable rate of interest. The rate of interest on either a fixed or variable rate is lower than you would find on an unsecured loan. This is due to the fact that your lender holds a valuable piece of your property.
Since these loans are higher than an unsecured loan you have an extended time to pay off the loan. Your application process is still quick and easy with little paperwork.
The bottom line is that you will never get approved for your secured loan if you do not fill out your quick and easy application and turn it in to representatives standing ready to help you. Once you take this first step you will have an answer within 48 hours. Know that no one is rejected due to credit risk, because your credit history and score is not checked.