What Is A Secure Loan?
Those who are in the market for a loan would be well served to have some knowledge of the subject. All loans fall into one of two categories, secured and unsecured.
Secured loans are protected by collateral or an asset. In general, secured loans are the best way to obtain large sums of money. In fact, a secured loan is often the only way someone can access a substantial amount of funds.
Examples of Secured Loans
- Mortgage Loans – A mortgage is one of the most common types of secured loans. A person buying a home usually doesn’t have the resources to pay for the house upfront. Instead, they secure a mortgage by offering the house as collateral. Since people generally want to keep their homes, they make every effort to repay the loan. However, if a homeowner fails to make payments, the lender can foreclose and take possession of the home.
- Car Loans – Car loans are another example of secured loans. When purchasing a new vehicle, most people don’t have $20,000 or $30,000 available in cash. The vehicle itself serves as collateral for the loan. Just like a mortgage, you must make timely payments, otherwise, the lender can repossess the car.
- Home Equity Loans – While most secured loans are used to buy something, not all are. A home equity loan allows a homeowner to borrow against the equity in their property. The amount of home equity is determined by subtracting the remaining mortgage balance from the home’s current market value. These loans are also secured by the home, and failure to pay can result in foreclosure.
Car Title Loans: A Smaller Secured Loan Option
Not all secured loans are for large amounts of money. Car title loans are typically between a few hundred and a few thousand dollars. A car title loan can be taken out by anyone who owns a vehicle with a clean title, meaning the car is either fully paid off or nearly so.
Companies like Embassy Loans of Florida have helped thousands of customers access cash for various emergency situations. When someone loses a job or needs to pay rent, a car title loan can provide fast financial relief. Unlike many other secured loans, car title loans require no credit checks and can be completed in as little as one hour.
A car title loan can be the fastest and most convenient secured loan option when you need emergency funds. Apply online or contact Embassy Loans at 833-839-2274 today to learn how we can help.
