A secured car loan is one in which you put up collateral as security to the lender before getting the loan. This means that in an event when you are not able to repay the loan, the lender can repossess your car or house, which are the most common possessions used as collateral. The benefit that you as a borrower have is that you get a much more generous loan, which means lower rates of interest and a longer repayment period. If you are looking for a loan for a new car, then your car should be enough as collateral. However, in case of a used car, you might need to use your house as collateral.

Moreover, when you are opting for a secured car loan, the lender is likely not to be too bothered about your credit history, because you are offering him a tangible possession as security, giving him no reason to be frazzled about your not returning the money. This means that you shall need to pay a much lower rate of interest than you would need to in case of an unsecured loan, in which the lender compensates for the lack of security with a higher rate of interest.

Secured car loans usually end up in very easily affordable monthly installments, because of the long repayment period. Also, since the loan is less riskier for the lender than an unsecured one, it means that you are likely to be offered more flexible terms and conditions, including the penalty fee. The overall result is a loan that is easy to pay for the borrower, and highly secure to the lender. The only possible disadvantage when compared to an unsecured loan is that you need collateral. But if you intend to repay the loan over the stipulated time, that should be no problem at all.

Secured car loans also offer an advantage to buyers who do not have a steady income that shows well on paper. That’s because, with the car being used as collateral, the lender is likely to be less fussy about how much monthly income the borrower is drawing. In case you put up your house or property as collateral for a secured auto loan, you might be able to avail tax deductions on the interest of your loan, which is yet another advantage. Just be sure not to default on your loan, and you might actually end up with more money by the end of the repayment period, than you had started off with!

We at Greater Central Texas Federal Credit Union provide you quick and cheapest car loans in Texas. We neither harass you by asking unnecessary questions nor make you wait for days to sanction your auto loan. To obtain cheap and secured auto loans easily and quickly, visit us at 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.

Secured Auto Loan - Cheap Auto Loan