Last updated on August 25th, 2019 at 03:11 pm
Personal loan is an important thing for everyone. It is an important financial decision to go for the personal loans. For example, you are facing sudden financial crunch, you want some money to pay your credit card bills or other household expenses. In such scenario, getting a loan from the lender can be a good decision.
It will help you to make the necessary expenses without any worries. When your short term financial crunch will be over, you can easily repay loan. Now, when it comes personal loan, you credit score is considered as an important thing. If you have low credit score, you have an alternative option and that is loan with collateral.
So, what are the things that you can use as collateral for repaying the personal loans? Here is a guide for you in this matter.
Your House or Property as Collateral
You can use your house of property as collateral for getting a loan. Typically, this type of loan is known as second mortgage. Second mortgage is a popular option for getting personal loan against the house or property. If you have multiple properties, you can use any of them for getting the loan. Now, how much amount can you get? Well, different second mortgage lenders have different terms and conditions. They also follow different methods of judging the property value. As per the surveys, a borrower can get as much as 90-95% of the property value as loan. This kind of loan is popular among those, who may face short term financial crunch due to not having steady source of income. It can be effective in paying medical bills or bearing expenses of the kids.
Using Car Logbook
If you have poor credit score and you have been denied by the bank for a personal loan application, logbook loan could be a good option. The best thing is that you do not have to undergo credit score checking. Now, some people would argue on that fact that there are different kinds of bad credit loans. So, what makes logbook loan so special? Basically, this type of loan comes with low rate of interest in compare to other bad credit loans.
Invoices as Collateral
Invoices can be used as collateral for getting a personal loan. As it sounds, it is quite popular among the entrepreneurs as well as business owners. Other people do not have much idea about such loan and they hardly go for such loans. When there is a short term business financing crunch, such application for loan has been made by the users.
Gold for Collateral
Many people have the habit of gold investment. If you have this habit, you can use the invest gold to get a personal loan. You do not have to leave the gold stock and at the same time you shall get money to meet your sudden requirements. Even gold jewelries can be used as collateral.
A lot of professional and well known private lenders are available. You can consult them to find the most suitable option to borrow money.