The Cheaper Loan
Sunday, September 2nd, 2007In today’s post sub prime crisis banking arena, getting accepted for personal loans without a good credit rating can be very challenging. In many cases banks are limiting fair credit applications to secured loans and are very tough in approving unsecured loans.
While a secured loan can be more difficult for the applicant since he may not always have the proper collateral to back up the loan he needs, it can often be a cheaper option than an unsecured loan. As a rule of thumb, the lower the bank’s risk the cheaper your loan will be. In fact, the difference in rate between an unsecured loan and a secured one can often be so significant that it pays to apply for debt consolidation and get rid of some older unsecured loans for cheaper options that may be available to you.