Securing a personal loan with collateral gives you more borrowing power than you might realize. Qollateral can help you make the most of your luxury assets by providing the highest offer loans and lowest interest rates in the country. Continue reading to learn more about the advantages of an asset-backed loan through Qollateral – the nation’s most trusted secured loan lender.
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What Are Collateral Loans?
Collateral loans are a type of secured loan backed by an asset or collateral. Examples of collateral include valuable personal property such as high-end jewelry, luxury watches, diamond rings, designer handbags, collectibles, and precious metals. Since an asset is used as security for the loan instead of reviewing the borrower’s credit or financial history, collateral loans are an attractive option for anyone searching for a quick and reliable influx of cash. Of course, they also come with pros and cons, which we will explore in further detail below.
How Do Collateral Loans Work?
The process begins by booking an appointment to discuss collateral options for loans. Our team of appraisers with years of combined experience in the field will appraise the borrower’s assets to determine the loan amount. From there, all it takes for the customer to receive their funds immediately is to sign the loan contract. Assets used as security for the loan will be stored in a high-tech vault inside the International Gem Tower until the end of the loan term.
Pros and Cons of Collateral Loans
Collateral Loan Pros
Access to High Loan Amounts
Depending on the type of asset used as collateral, the borrower can often secure a higher offer than traditional, unsecured loans, particularly if they have limited or poor credit. Unsecured loans are based on income and credit history and are often capped at the lowest possible amount to prevent risk to the lender. That isn’t the case when securing a personal loan with collateral, which is determined mainly by the item's value. Less risk to the lender equals higher offer loans.
Lower Interest Rates
We serve customers all over the country. Qollateral, however, is based in New York, one of the most protective states for consumers regarding lending. That means lower rates than most states, with a monthly cap of at most 4% for all our customers, plus a standard insurance and vault fee. Many unsecured loans don’t even come close to those rates.
Easier Approval Process, Even If You Don’t Have Great Credit
Using collateral for a loan poses little to no risk for the lender. It is easy to get approved for a loan if you have a valuable and authentic asset to use as security, even if you don’t have an excellent credit history.
Flexibility in Loan Terms
Since secured loans aren’t as risky as traditional bank loans, they offer more flexibility regarding the loan terms, which Qollateral will review on a case-by-case basis to determine the best option for the borrower.
Collateral Loan Cons
Risk of Losing Assets
At Qollateral, we encourage our customers to carefully consider the cons of using collateral for a loan, especially if there are concerns about their ability to repay the loan amount. Even unexpected circumstances, such as illness or potential unemployment, can deter the borrower’s ability to repay the loan within the agreed-upon time. In that event, the asset used as collateral will be surrendered to the lender to settle the loan. Another option would be to sell the asset to Qollateral in exchange for a fair and competitive price.
Not Everyone Is Eligible For a Secured Loan
Qollateral is dedicated to helping Americans nationwide find solutions for their financial needs. However, if the borrower does not have a valuable asset to use as security for the loan, they, unfortunately, will not be eligible for a collateral loan.
Is a Collateral Loan Right for You? Factors to Consider Before Committing to a Collateral Loan
With a clear understanding of collateral loans and the pros and cons, it’s time to determine if it is right for you. First, are you in a financial situation to comfortably repay the loan amount within the allotted loan period? It’s also advantageous to understand the value of your asset and if it can provide the amount you need to borrow before seeking a collateral loan.
Finding Loans with Collateral
The next step is to find a lender you can trust. Qollateral serves customers across the nation with in-person and virtual services. The process to secure a high-offer collateral loan is safe and straightforward, and it starts with a hassle-free appraisal. Book your appointment today to get started.
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