Secured loans with mortgage (mortgage or vehicle) or guarantee

There are loans in which you will be asked for a guarantee or guarantee to grant you the credit. They are a good option in certain situations.

What is a guarantee?

What is a guarantee?

The guarantee means that upon receiving a loan you must deliver as insurance an asset of your property (pledge). That is, in the case that you could not pay the debt, the lender would take ownership of your property.

If you do not have an important asset of your property, a third person can be your guarantee, also called a guarantee.

What is an endorsement?

What is an endorsement?

An endorsement or guarantor is a person who has a better financial profile than yours. This person assumes responsibility (total or partial) for your debt. That is, if you cannot pay the debt, the lender will contact the guarantor to take care of the remaining balance. For this reason, guarantors are often relatives or close friends.

There are different assets that you can give as collateral in a security loan, but the most used are real estate and automobiles.

Home equity loans

Home equity loans

To apply for this loan you must have a property in your name; it can be a land, a commercial premises, a house or an apartment, the essential thing is that it is in your name.

Another usual requirement is that you have to have paid at least 80% of the property.

Advantages of the mortgage guarantee

Advantages of the mortgage guarantee

  • Few additional requirements:
    The main advantage of these types of loans is that there are lenders who do not check your credit history or your current employment situation; If you have a property registered in your name, that is enough to accept the loan.
  • Accept negative Bureau:
    It is usually a good option for those people who have a bad credit bureau rating, and that is not why it has a high interest rate.

Disadvantages of the mortgage guarantee

Disadvantages of the mortgage guarantee

  • Danger against default:
    The major disadvantage is that if for some reason you cannot pay the loan, you will lose ownership of the property.
  • Approval Time:
    Sometimes the lender needs to do additional checks on your property, which can delay the approval of your credit.

Consider other loan options before putting your property as collateral, especially if you are not sure you can afford it. If you need a small loan you can opt for urgent personal loans or microcredits, even if the interest is higher. The mortgage guarantee is adequate when the loan is for a high amount and you have no other option.

Pledge loans with vehicle guarantee

Pledge loans with vehicle guarantee

Like home equity loans, these loans deliver an asset as collateral or pledge: the car itself. You must have ownership of the vehicle and have paid in full.

The amounts are less, they are approved quickly and the money can reach your account in a few hours. Many lenders do not check your credit history.

Something you should check carefully is that it is a vehicle-guaranteed loan and not a sale of the vehicle. In this last scenario the lender buys you the vehicle and then rents it to you. There have been cases in which people think they are paying their monthly loan fee, but in reality they are paying the rental of the vehicle.

You can use Robin to request a loan appropriate to your situation.

Maybe a secured loan is what you need, but you can also compare with other available options.