Can a secured personal loan get you a better rate or loan?
Looking For A Secured Personal Loan? Jacaranda Finance Can Help!
Secured vs unsecured loans: what is best for you?
If you’ve done a bit of searching online about finance options, you might have heard about a secured personal loan. However, what exactly does it entail?
For many people, borrowing money happens at some stage in life. Therefore, there are as many types of loans as there are reasons for taking them out, giving us all a variety of options to choose from. So, if you’re thinking to yourself ‘secured vs unsecured loans’ and you’re after a secured personal loan comparison, keep reading.
Secured vs unsecured loans: The secured loans definition is that a secured loan is a loan that requires an asset to be tied to the loan as security for the lender. This is to protect the lender in the event that you are unable to repay the loan. In other words, if you default on your loan or can’t pay it back, the asset can be seized and sold to make up for the lost money. However, that’s the worst case scenario. In our experience, our clients take out a secured personal loan because they’re looking to borrow a larger amount. This could be in the form of a medium loan, from $2,000 to $4,600, or a large loan of $5,000 to $10,000. So, if you’re looking to consolidate your debt against security, this could help you out. This way you have a single loan with one manageable repayment.
At Jacaranda Finance, we would consider a car, motorbike, caravan or boat as security that could be tied to your loan.
Don’t pawn your car just yet, consider secured loans against your car!
Even though you might not have realised it, you’ve probably come across secured loans before. Take a look at these.
Secured loans definition: Some types of secured loans:
- Mortgages – a mortgage is a type of secured loan since the loan is tied to the property. The house or property is the asset that protects the lender if you were unable to repay the loan.
- Secured loans against car – another type of personal loan is a secured car loan. These loans allow people to borrow money to pay for the purchase of a vehicle.
- Personal loans – secured personal loans can be used for any purpose and secured with all types of assets – just make sure you check what your lender accepts as security.
- Here’s something important to make note of – unlike a secured car loan, which is used to buy the car that then becomes the security tied to the loan, a secured personal loan can only be secured with an asset you already own. However, you can also apply for a secured car loan with Jacaranda Finance. Click here to find out more about a Jacaranda Finance secured car loan.
If you’re doing a secured personal loan comparison, don’t look past Jacaranda Finance!
If you’re after secured loans against car, we may be able to help! A secured car loan, also know as secured loans against car, are a helping hand in getting behind your dream wheels.
At Jacaranda Finance, you can apply for a secured car loan between $8,000 and $100,000. Therefore, whether you’re wanting to find a pre-loved gem just to get you from A to B or you’re after some luxury wheels to take you wherever you want to go, we have you covered. Just use our secured car loan calculator to find the right amount for you.
With our secured loans against car, you will use the vehicle that you are buying as security for your loan. However, As long as you keep up with your minimum repayments, your car loan will be paid off in no time and you could be looking at a much more impressive credit score! Check out our secured car loan calculator, here.
Well, if you’re doing a secured personal loan comparison, look no further than Jacaranda Finance. Head to our homepage or scroll up a bit and fill in our quick and easy online application form. It could take you just a few minutes!
To apply for a secured personal loan or secured loans against car, all you need to do is fill out our simple application form. It will ask you for relevant details that will allow us to assess your application, including your purpose for the secured loans.
In order to be eligible to apply for a secured personal loan with Jacaranda Finance, there are few basic requirements that you’ll need to meet.
- Be at least 18 years of age
- Have been receiving a regular income into a personal bank account for at least the past 90 days
- Be an Australian citizen or permanent resident
- Have a contact number and email address
The short answer is yes, we do offer a secured personal loan bad credit. So, if you’re doing a secured personal loan comparison, read this…
At Jacaranda Finance, we understand that getting personal loans from a bank or other financial institution can be difficult if you have bad credit. It’s disappointing to get let down, so that’s why we think you should come straight to us for a secured personal loan with bad credit history.
Instead of looking at your credit rating, we look at your bank history over the last 90 days as well as your Centrelink income statement if you receive one. With this information, our highly skilled loan assessment team will do our best to understand your current financial situation and not blame you for your past. Therefore, a secured personal loan bad credit from Jacaranda Finance might be just what you have been looking for!
If you have been searching endlessly for secured personal loan bad credit, your search may be over. As long as you meet our eligibility requirements, you could be one step closer to getting approved for a secured personal loan with bad credit history.
To apply for a secured personal loan, you’ll need to have your contact details handy, as well as your internet banking details. In addition, we’ll also ask you to provide us with 100 points of ID.
If you receive government benefits, make sure you have those details handy.
Then, once you’ve submitted your application, make sure you keep an eye on your mobile phone for us to get in touch with you. This information remains the same for secured vs unsecured loans.
With a secured personal loan, you can borrow between $300 and $10,000 with Jacaranda Finance. However, if you’re looking for an amount of $2,000 or less, an unsecured personal loan, we may be able to help you too. Secured vs unsecured loans – it’s completely up to you. Do a secured personal loan comparison top see what’s right for you.
Secured loans with Jacaranda Finance can carry a repayment term of 13 to 24 months.
Well, we offer two different types of secured personal loans: Medium and Large loans. Here’s what they look like.
Medium secured personal loan
- Amount: $2,100 – $4,600
- Repayment period: Between 13 and 24 months
- Establishment fee: $400
- Annual Percentage Rate: 48%
- Maximum Comparison Rate: 67.41%
- Must include a vehicle (car, motorbike, caravan or boat) as security
Large secured personal loan
- Amount: $5,000 – $10,000
- Repayment period: Between 13 and 24 months
- Annual Percentage Rate: 21.24%
- Maximum Comparison Rate: 48%
- Must include a vehicle (car, motorbike, caravan or boat) as security
Repayments on a secured personal loan work by setting up a direct debit with us. Therefore, your payments can be made automatically without you having to worry about doing them all yourself.
Secured personal loans can be used for a variety of different purposes. So, here are some examples of reasons people choose secured personal loans:
- Car repairs or maintenance
- Wedding expenses
- Moving costs
- Home renovations
- Child care costs
- Medical bills
- New furniture
- Down payment on a car
You can apply for secured loans if you have bad credit. However, even though we do conduct credit checks, we assess people on a case by case basis. Therefore, even if your credit rating is less than perfect, you may still be able to get a secured personal loan with Jacaranda Finance. That’s because we understand your credit rating may not be a true reflection of your actual relationship with money and credit. We prefer to look at your current financial situation. Therefore, we use the latest in safe banking technology to look at a read-only copy of your most recent financial transactions to see if you can safely manage the financial obligation of a loan.
While secured and unsecured loans are both types of personal loans, there are a few factors that differentiate them from one another.
With secured loans you can usually borrow larger amounts since the lender is protected by security.
Unsecured personal loans typically charge higher fees since they are riskier for the lenders.
If you default on your payments on the secured loan, the lender is legally liable to repossess your asset presented as security.
If you default on an unsecured loan the lender could pass you onto a debt collector.
Secured loans definition: Terminology
An asset refers to an item that has economic value that could be converted into cash. In relation to a secured personal loan, the asset refers to the vehicle you offer as security.
This stands for Annual Percentage Rate (APR). It is the rate of interest charged at the cost of borrowing the loan. Therefore, it describes the overall amount of interest you’ll pay for the loan over a whole year.
These are useful tools to help consumers to understand the true cost of a loan. It combines the interest rate as well as the other fees and charges, to allow consumers to accurately compare loans. This rate is helpful for when you are doing a secured personal loan comparison.
This is a fee that you may be charged if you were to default on any payments.
A direct debit is an automatic payment method that you can set up with your creditor, and allow payments to be automatically withdrawn from your account.
Refers to the amount of value you have built up on an asset. Equity can be explained as the total value of the asset minus the liabilities owed on that asset.
This is a fee charged after first taking out a loan. However, make sure you check with your lender to find out how yours will be paid.
This refers to the cost of borrowing money over time. It is calculated as a percentage of the amount borrowed.
This is the initial amount of money borrowed and still owing on the loan. It is the actual amount requested, before interest is added.
Is the asset that secures the loan for lender.
Broader Lending Terms
- Credit rating
This is a number given between 0 and 1,200, or 0 and 1,000 depending on the credit reporting agency, that reflects your history of using credit. Furthermore, traditional lenders use this credit rating to determine whether they want to lend to you or not.
Your credit report is a breakdown of the information reflected by your credit rating. Some of the information that is shown in the report is the following: Personal information such as name, address and contact details. Other information includes the history of your credit, such as your payment history, as well as length of credit history, credit use and credit mix.
A creditor refers to the person or institution that lends you credit, with the intention of being repaid in the future. Another word for a creditor is a lender.
When you have multiple debts that you are paying off with separate payments, it may seem slightly difficult to manage. Therefore, debt consolidation works by taking out a larger loan to pay off smaller debts. So, this leaves you with just one payment to manage.
Apply for an unsecured personal loan with Jacaranda Finance today!
In summary, secured loans are simple to apply for and you can get them right here online with us. So, if you needed to make a much-needed purchase, a secured personal loan might be exactly what you need to make that happen. Now that you know the secured loans definition, apply now! Even if you’re after a secured personal loan with bad credit history.
Small Personal Loan
Up to 20% Establishment Fee
+ monthly fee up to 4%
Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.
Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.
Medium Personal Loan
Annual Percentage Rate (APR) is 48%
Comparison Rate is 67.41% per annum.
This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 48%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest*) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.
Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $2,732.56 (reducing interest*) = $7,632.56 total repayable over 24 months with weekly installments of $73.39.
Large Personal Loan
Annual Percentage Rate (APR) is 21.24%
Comparison rate is 48% per annum.
Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $2,027.80 (Interest) = $7,027.80 total repayable over 18 months with weekly installments of $90.10.
Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.