Is It a Smart Idea to Get a Share Secured Loan?
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What Are Share Secured Loans?
How Do Share Secured Loans Work?
Benefits of a Share Secured Loan
Fewer Application Requirements
Helps You Build Your Credit Score
Qualifying for a Share Secured Loan
Common Uses of a Share Secured Loan
Disadvantages of a Share Secured Loan
Who Is a Share Secured Loan Best for?
Someone with no credit Your on-time payments will likely be reported to the consumer credit bureaus, which can help you establish a credit history and track record of paying your bills on time. Someone with bad credit If you have a poor credit score, share secured loans can help you rebuild your credit profile as you make on-time payments. Someone who may struggle to pay back the loan If you are unable to fully repay the loan, the bank will take the money you have in savings and you will also owe interest. Someone who can qualify for other types of loans and credit A share secured loan can be a good way to start building credit if you have limited options, but it isn’t the only, or necessarily the best, one. One alternative is to get a secured credit card, which is a form of credit that requires an advanced deposit to secures future credit card purchases. There are also credit cards designed for people with thin or poor credit that won’t tie up your savings. Or, you might be able to qualify for a secured personal loan, which involves putting up an asset (such as a home or car) as collateral. Someone who does not need to build credit With a share secured loan, you will pay interest on money you already have. So, if you don’t need to build (or re-build) your credit, you may be better off simply using the money you have in savings instead of taking out a loan using your savings as collateral.
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