Wednesday, June 4, 2008

What is a secured loan?

A secured loan is a loan that is collateralized by an asset. For example a home and a car are secured by the home or the car. If you stop paying on them, they will be foreclosed or repossessed. The bank or finance company will hold on to the deed or title until the loan has been paid off in full. Secured loans are the best way to get large amounts of money fast. A lender is not likely to loan a large amount of money to you without some skin in the game.

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