Lender Secrets that Ensure You Get the Best Secured Loans!

Adam Brand Adam Brand | Operations Director

The best secured loans are the ones that offer the cheapest interest rates and associated fees without monthly payments that will break your budget. Finding such loans requires a bit of effort by way of researching. You can begin that process here on the Secured Loan Expert website.

In order to qualify for the best secured loans, there are three things to consider ?? your credit history, your willingness to compare and getting some professional advice. The fact is that favourable loan opportunities do not grow on trees or fall out of the sky. You create such opportunities yourself by the actions you take. Allow us to explain.

image one

Your Credit History

Whenever a lender decides to lend money, it is taking a substantial risk. The borrower could default on the loan, leaving the lender out in the cold with lost money and no practical recourse for recovering it. To protect themselves from those risks, banks run credit searches and affordability assessments on prospective borrowers. One of the things they look at is individual credit history.

Your credit history is an electronic record showing how you have handled credit in the past. A bank uses this information to determine how much risk you present. What types of information are lenders looking at? Consider the following:

  • your monthly income potential
  • your current debt-to-income ratio
  • your past repayment history
  • your relative job stability
  • your total credit history.

For the best secured loans possible, you want to present very little risk. That means the first step you can take to qualify for secured loans in the future is to make sure you manage your credit responsibly now. The better you are at handling money in the short term, the more likely it is that you will get the best loan rates and terms on future secured loans.

If you do not have the best credit history in the world, that's not to say you will not be able to get a secured loan. You just might have to pay higher interest and be willing to accept lower loan amounts.

Comparing Loans and Lenders

The second thing you can do to qualify for the best secured loans is to compare both loans and lenders. When you compare secured loans, you are looking at everything that goes into determining how much you can get and how much you will pay for it. It's no different from comparing car insurance policies or savings accounts.

We consider comparing to be a qualification because it demonstrates how much you really want the best secured loans you can get. If you are willing to put in the time to research and compare, you deserve to find what you are looking for. Another consumer unwilling to put in the work is not likely to get the best deal.

When you compare loans, you will be looking at things such as loan-to-value (LTV) ratio, minimum and maximum loan amounts, and repayment terms. Most importantly, you will be looking at standard APR and Representative APR. It pays to know the difference between these two.

The standard APR (annual percentage rate) is the amount of interest charged to your loan on an annual basis. It is based on the outstanding amount at the start of every new year. This means you pay more interest up front, less toward the back end of your loan.

The Representative APR represents the entire cost of borrowing. It includes the standard APR and all known upfront costs established by the lender. This number is greater than the standard APR, and it is more accurate in terms of how much you pay over the life of a loan.

For the best secured loans possible, do your best to manage your credit wisely and put the time and effort into comparing. Talk to our experts, they will help you to choose the best options to suit your individual needs and with our relationships with lenders ensure you get the best possible deal. Doing these things will ensure you get the cheapest rates possible along with monthly payments you can afford.

Instantly compare 950+ of the UK's best secured loans

Rates from as low as 3.75%