Why To Use A Secured Loan

Why would anyone want a secured loan?

• Easier to obtain. Unsecured loans are almost always cheaper for those with decent credit scores, but secured loans provide lenders with, well… security, so they're more willing to lend to poor credit scorers.
  
  
  
• Big borrowing is possible. The maximum unsecured loan is £25,000 yet secured loans can be £75,000.
  
  
  
• Borrowing over a longer period. Secured lenders prefer loans to last longer to help offset hefty set-up costs, usually from five to 20 years. Unsecured lending is usually one to seven years. Borrowing for longer does reduce the monthly repayments, but substantially increases the total interest repaid.