Secured Loans Company
How does a lender decide whether to offer a secured loan?
When you deal with a secured loans company, they will carry out a number of checks before deciding whether to lend you money. However, it's also important to declare important information – for example, whether you already have borrowing secured on your home.
When you apply for a loan from a secured loans company, the firm will base its decision on two key factors: your likely ability to repay the loan, and whether you're a good credit risk. Your credit rating is a big part of that decision, but it's not the only part: even if you've got a great credit rating, lenders may still refuse to lend you money if they think you're overstretching your finances.
Because the loan will be secured on your property, usually your home, the secured loans company will also want to know whether your property has been used as security for other borrowing with other lenders. This information will normally be discovered during the credit checking process, and if you've already taken out a secured loan with another lender then you may find that the secured loans company will reject your application. However there are exceptions: if you've got a mortgage with the lender, they may offer a secured personal loan at very low rates.
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