There is a good chance that you need to borrow money at one time or another, just as many other Australians do. After all, Australia’s total household debt to GDP ratio is far ahead of many other countries, at over 120%. So, there are plenty of people out there thinking about getting a loan at any given time.
However, when the time comes to take out a loan will you make the right choice? There are several different options but there is no doubt that using your possessions as collateral is a move that makes a lot of sense.
“Teen driver in car” (CC BY 2.0) by State Farm
A Fast, Slick Process
None of us wants to hang about waiting for a loan to be approved or for the funds to be released. This is one of the most frustrating things about bank loans, as they can take an eternity to be assessed and then drawn down.
This is where collateral loans can really save the day. Since there is nothing really to be assessed, the money is given to you a lot quicker. You might need it quickly for an emergency, meaning that this speed is even more vital.
You might not always need to borrow money in such a hurry. But there is no denying that it is a huge benefit when you just want to get things sorted out. Even if you aren’t in particularly in a hurry for the money, arranging it quickly lets you get it over and done with so you can focus on something else now.
No Chance of Being Rejected
The fear of being rejected for a loan is something that stops a lot of people from even asking for one. As well as being a bit annoying and embarrassing, this is also a huge waste of your time. You don’t want to waste precious time on this only to be let down in the end.
All of the effort that you put into applying for a loan will go down the drain in this case. Being rejected for a loan might also put you off the idea of asking for money from other lenders, even if you really need it for some reason.
The good news with collateral loans is that there is no chance of you being rejected. This is because they don’t assess your credit history, your employment or anything else. As long as you have a possession such as a car with no other loans on it then you will be accepted.
Get a Loan Whenever You Need One
You might never know when you might need a loan. Life can sometimes sneak up on you with emergencies that require you to have more money than is sitting in your account right at that moment.
This is when it is good to know that you can get a loan sorted out speedily and with no fuss. You don’t need to put off this expense any longer than you should. You can also use the same item as collateral for a number of different loans at different times.
Sort out your loans in this way from now and you will discover that borrowing money whenever you need it becomes a lot easier.