To secure or not to secure your loan, that is the question! If you don’t know what those words mean when they pop up in our comparison tool, you’d better read on and learn quickly!
With a secured loan, the borrower has to put up an asset as security for the loan; when failing repayment, the lender takes possession of the secured asset to cover the costs. If the sale of the asset doesn’t cover the full amount owing, the borrower must pay the difference too.
Most of the time with loans for purchasing high value assets like cars or motorcycles, the new asset itself is the security. If you don’t pay the lender back, your fancy new motorcycle is going straight into the lender’s hands.
The main reason to go for secured loans is that they usually come with a lower base interest rate, as the risk to your lender is lower. While there seems like there’s more risk for you, as long as you have a solid plan for repayment, everything should be smooth cruising under a lower rate.
In an unsecured loan scenario the lender does not use any assets as a security (no collateral). This comes with a higher charge interest rates when compared to secured as the risk is more for the lender.
These types of loans are not generally for cars, because you can usually save money by using the vehicle as security. Some situations that an unsecured loan might be useful for a car, is if the car being purchased is not an acceptable asset for that specific lender, if the asset is too old or even if you wish to borrow more than the actual purchase price by a substantial amount to cover costs or customisations to the car.
How much does my lender need to know?
Generally speaking, lenders like to know what they’re getting into before approving a loan. Besides asking for information such as payslips and credit history, they might also require you disclose what specifically you’ll be using the medical loan for. There are loans that are the “no questions asked” kind, though you should confirm if the rates and other parameters are the best for you. We will respect your privacy as much as we possibly can.
The information you provide to the lender can affect their decision making.
Interest rates: They never stop.
Lenders have the power to increase or decrease your interest rates if the rate isn’t locked on the loan. However, even if the rate is listed as locked, they still have the right to make changes if information provided in your application gives them reason to do so.
There’s always the possibility that you get worse rates than others if you need a risky surgery, or a relatively unknown treatment program. Worse case scenario, you might have trouble getting approved for the loan, even. This is especially troubling if combined with other factors lenders consider undesirable, such as having low income.
LoanOptions stands by you, no matter what. We help you look for the best options available to you given the circumstances. And if one lender is harsh on you, don’t forget that you have plenty of others to check out. The last thing we want is for anyone to get kicked while they’re down–that’s just not cool.
After a big surgery, your body needs time to recuperate. Chances are you might not be in position to work for an extended period of time immediately afterwards. Similarly, if you’re in need of some sort of treatment or therapy, there’s a chance that you may have to take time off work for that.
It’s all fine if you have a bunch of sick leave saved up, or if your job comes with related benefits, but for those without such luxuries, you may have to accept that you might have reduced or even zero income for a while.
Uh oh, suddenly a loan that would be a piece of cake to repay might seem quite a bit more daunting. LoanOptions’ loan comparison tool has all the important info you need to judge how suitable a loan is for you, but don’t forget to take into account your own circumstances before you make any decisions.
Good health should always be your #1 priority in life. If it’s not, then maybe something’s getting in the way of that… such as money. Medicine, treatments and surgery can all be huge expenses, acting as the major and final barrier between you and feeling better.
When you put off seeing a medical professional or getting the procedure you need, not only do you prolong your suffering, but your condition only gets worse. Perhaps instead of waiting until it’s too late, it’s better to take out a loan now and take care of one problem.
If you’re sick, the last thing you need is more stress; looking through the overwhelming horde of lenders available is the definition of stress. Aspirin’s not going to help with that headache!
Here’s where LoanOptions comes in. With the click of a button, our AI-powered comparison tool sifts through 60+ lenders for you, including big banks and private lenders, then neatly arranges all your choices and relevant info in plain view. Leave the hard work to the AI, and then take your pick and focus on your well-being.
There’s a lot of medical conditions that lenders are willing to help with, such as:
The devil is in the details, and it can be more than a pain if you do not read the fine print properly or if not all associated fees are brought to your attention as a borrower.
Ask yourself these questions:
Are there any entry or exit fees?
What are the late repayment fees?
Are there fees for paying your loan off early?
Are there any other added costs that could come up?