How to Apply For a Secured Personal Loan Without Collateral

If you are planning to purchase from the latest car show and paying through personal loan is your preferred option, better think again. By loanable amount bracket, the price of a brand new car is more likely affordable only through a secured personal loan or a loan with collateral. But instead of putting your asset, such as house and lot, at risk, why not just preemptively use your soon-to-be purchased asset as collateral for itself? How?

There are car companies and car dealers that offer payment-schemes which do not require you to get readily available cash from banks. You only need a clean credit history, written guarantee from your employer that you have the ability to pay from your salary, and occasionally, a co-signer or co-maker who will take over the responsibility of paying when you can no longer pay. Honda New Zealand, for example, offers a weekly and monthly term of payment. It can even be cheaper to buy car this way as interest rates for delayed payments are roughly at 15%, while interest rates for bank loans range from 10% to 26%.

Photo courtesy of Wikipedia

Remember that banks are not the only ones willing to lend you time and money. Many sell products in credit so no need to pay fully in cash.

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James Henry Abrina is an editor, writer, SEO specialist and currently a Corporate Communication Professional, Market Desk Strategist, Business Development Officer and Unit Head for Business Profiles Incorporated.

He currently specializes in security management and business intelligence. Together with the company, he advocates Business Continuity Planning to change how the Philippine business sector sees the definition of crisis response and management.

For more useful information, read his articles at Triond and Masscom Tutor. Or his EzineArticles page.