Secured loans vs. unsecured loans. What’s the difference?
Are you looking to get a loan but don’t know where to begin? Secured loans, unsecured loans, what’s the difference? What are the advantages and disadvantages of each? Should you get a secured loan or unsecured loan? Don’t worry, at QuickCash we’ve got you covered. We focus on providing quick and instant loans with no hidden fees and don’t charge any fees for early repayment either. We’ve simplified all those questions that come with applying for a loan.
Here’s everything you need to know about secured and unsecured loans, both of which are available from QuickCash.
What is a secured loan?
A secured loan is when you use valuable items such as a vehicle, a boat, or real estate, to secure your loan. These items are the security against the loan. The reason for this is that if for some reason you can’t meet the condition of your loan or contract for example regarding repayments then the loan provider will use that security item to recover the debt by selling it.
The security item you list needs to have a value more than the loan you’re taking out. We can use cars, motorbikes, boats, trailers and real estate as security. If you’re using a vehicle it has to have a current WOF and registration, be registered in your name and have no outstanding debt against it.
At QuickCash, when you apply for a loan we assess your situation and make sure the loan you are applying for works for your circumstances and that you’ll be able to pay it back in the time agreed upon. We work with you to make sure you don’t get to a situation where we’ll need to take your security item to repay the loan. You’re also dealing straight with the person who’ll be approving your loan so there’s no back and forth between different people trying to get approvals.
At QuickCash our loans include:
- Car loans
- Boat loans
- Caravan loans
- Debt consolidation loans
- Emergency loans
- Small business loans
- Holiday loans
- Home renovation loans
- Legal loans
- Medical loans
- Rental bond loans
- Wedding loans
What are the advantages of a secured loan?
At QuickCash we don’t have any secret fees, our interest rates are fixed and we don’t charge extra fees if you’d like to pay off the balance of your loan earlier than initially intended.
- Depending on the value of your security item, you can often borrow more money with a secured loan than with an unsecured loan.
- Your loan is also likely to be approved faster. At QuickCash, we take around 25 minutes to assess your application once you’ve submitted it and can often have the cash in your account the same day.
- With a secured loan, we don’t charge extra fees if you would like to pay off the balance of your loan earlier than initially stated. This saves you money as you don’t have to pay the extra interest.
- The whole process is 100% online, this means no paperwork required which also saves you time. Just fill out our online application form.
What are the disadvantages of a secured loan?
- If for any reason you can no longer make your repayments, then your security item may be used to pay off the rest of the loan.
At QuickCash we want the loan to work out for you and will work with you to create a loan situation where this doesn’t end up being the case. If you need any other information about this just give us a call on 0800 784 252. We’re happy to chat and figure out the process with you together.
What is an unsecured loan?
An unsecured loan is a loan that doesn’t require a security item for your loan to be approved. Instead, it’s approved based on your ability to repay the loan. Your ability is assessed by you providing personal information such as your employment history, credit history, savings etc. Credit cards, smaller cash loans, student loans, phone loans all come under unsecured loans.
What are the advantages of an unsecured loan?
- If you don’t have a security item such as a vehicle or real estate you could still be approved for a loan.
- If you can’t repay the loan, your security item won’t be used to repay it because you didn’t need to list any security item.
What are the disadvantages of an unsecured loan?
- There are sometimes higher interest rates associated with unsecured loans.
- If you can’t pay back the loan for whatever reason, you don’t have a security item as a back up to pay back the loan. This means the loan may continue to grow as you incur late payment fees.
- If your credit score does not meet the requirements of your loan provider because it’s low, your loan may be declined.
Applying for a secured or unsecured loan is quick and easy with QuickCash. All you need to do is fill out our online application form which will take you around 3 minutes. Once submitted, we’ll assess your application within 25 minutes and you’ll know if you’ve been approved ASAP. You could have the money in your account the same day!
If you need any other information or want to have a chat about your situation just give us a call on 0800 784 252.
Disclaimer: This article is intended to provide general information only. It does not take into account your financial needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser.