Secured Loans Why are they better?

[jess1]

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From TheLoan-Arranger a day in the life of....

The types of customers I see daily break down into three main categories:

1. Those who have clean credit history but don't owe anything, they could quite easily get a loan from their bank at a cheaper rate and hence we don't write write much of this type of business.

2. Those who have clean credit history and do borrow (heavily) on credit cards, loans & HP and are looking for a big consolidation loans to reduce their outgoings per month (these are the ones who realise they are in strife and try to sort it out).

3. Those who have a poor credit history and are looking to fund a purchase for a car or home improvements (these customers know they aren't going to get the best rates due to their history)

And.......

Another category of customer is the one who thinks their credit record is better than what it is. Has defaults, CCJ's or arrears and expects to see an APR rate of 8.9%.

It's rare to see a customer with a poor credit history borrowing to consolidate their credit commitments as basically they won't pay their creditors if it gets too much for them per month and accept that they may have a default or CCJ registered against them.

A few reasons to choose a secured loan:

Borrow more than on an unsecured loan
No credit scoring takes place, all apps manually underwritten
Flexible re-payment terms
Payout quicker than a re-mortgage
Loans for any purpose (as long as its legal!)

A couple of funny tales from the week:

Mr K from Liverpool was asked for his payslip for 07/03/06 which he said ok, he'll send in. A couple of days later the payslip arrived, it was checked to see if it was acceptable and it wasn't. The reason why, it was his payslip for 07/07/05 and he had written in biro the date of 07/03/06 - let me find my spot by the brick wall and bang my head against it!

A Miss L from London applied for a secured loan, the name was familiar so old records were checked to see if we had received an application previously. It turns out she had applied the week before, since then according to the information submitted on the new enquiry she had a) moved house b) had a salary decrease of £18,000 p/a c) she was now married (but kept the same name!)

[marky]

quote "The reason why, it was his payslip for 07/07/05 and he had written in biro the date of 07/03/06 - let me find my spot by the brick wall and bang my head against it! "

After watching the Whistleblower program the other day, gotta ask .. was he an estate agent !

[jess1]

gotta ask .. was he an estate agent !

I dont think so, this guy by all accounts just got himself into a pickle and was pretty desperate for a loan. The upshot of this was had he submitted his unedited version, chances are we could have accomodated.