What You Need to Know About a Secured Loan

Posted: Tuesday, April 3rd, 2018

A secured loan requires the borrower to provide collateral to obtain the loan. Typically, a secured car loan uses the car itself as collateral. If you don’t make payments, then car is repossessed, and the lender uses the value of the car to pay off the loan. Secured loans provide the following advantages compared to unsecured loans:

Secured vs. Unsecured Car Loans

An unsecured loan might seem appealing, as it doesn’t use the car as collateral. However, without the car to repossess, you’re unlikely to receive great terms with an unsecured car loan. You might end up paying higher interest rates, and the bank will probably give you less time to repay the loan. In addition, an unsecured car loan requires extremely high credit, and not all applicants will qualify.

Unsecured vs Secured Loans

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Green Light Auto Credit is your headquarters for secured bad credit loans. Even if you have a low credit score (or no credit history at all) we can work with you to get the low monthly payments you deserve. Fill out an application today and contact us with any questions.

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