There are times when a typical payday loan is not enough. Emergencies might be costing you more than these loans allow you to borrow. Payday loan lenders have come up with a solution in secured loans that allow you to get more than a standard payday loan.
Advantages of Secured Loans
Payday loans are short-term loans just to tie you over to the next payday which could be days or a couple of weeks away. That could work great for just a little amount of extra cash to meet those emergencies head-on.
Secured loans are for emergencies that require the amount of cash that can’t be paid back as quickly as the next paycheck. They require a little bit more in the means of qualification. They need collateral. These loans can be obtained as quickly as a payday loan can but you do have to give a little bit more. You should have something to put up against it.
Warnings: What You Should Know
Before you apply for and get such a loan you need to be aware of what comes with it. Remember that you are putting up collateral against the loan with payday loan lenders. By doing this you are saying that if you are unable to repay the loan, the item that you put up as collateral can be taken as payment.
If you put your car up as collateral, you need to know that you can pay the loan back under the agreed-upon terms. When you can’t, you lose the car which will put you in an even worse financial bind and ruin your credit score. You need to be aware of these issues before you walk into a secured loan in case you can’t pay it back.
Most payday loans don’t require collateral like a car or jewelry. Your next payroll check is the guarantee of the first payment. Subsequent payments are collected after each payday. These are deducted from a checking account.
Payday loan lenders give you several options with secured loans being one of them. You may not have any credit. This could literally be your first loan. No problem, just be sure to start with a small loan so that you can successfully pay it back on time. You can use these loans to meet your larger needs and have time to pay them off. They have their advantages which are a benefit to you.