NEW YORK, NY / ACCESSWIRE / March 27, 2023 / OneMain Financial: A secured loan is backed by collateral, an asset such as a car or a house. When a borrower pledges collateral, the risk to the lender is reduced, and it may be easier to get a loan than if the loan was unsecured. However, if the borrower fails to make payments for a secured loan, the lender can seize the collateral. Therefore, getting a secured loan is only wise when the borrower is confident they can repay it.
Types of collateral
Pros of a secured loan
A secured loan that's tied to collateral has some benefits, including:
Cons of a secured loan
While a loan secured by collateral may have some benefits, drawbacks may include the following:
What to know before signing a loan agreement
Not all secured loans are created equal. Before the consumer signs on the dotted line, they should research to learn about all available loan options. Before moving forward with a loan, it's important that the consumer understands and accepts conditions like these:
The Bottom Line
Secured loans are an option for consumers with something of value to pledge as collateral and believe they can repay the loan in full and on time. Before committing to this type of loan, it's in the consumer's best interest to shop around and compare various lenders and their products.
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Contact Information
Keyonda Goosby
Public Relations Specialist
keyonda.goosby@iquanti.com
(201) 633-2125
SOURCE: OneMain Financial