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The interest rate given to a secured bad credit loan will definitely be lower than the non-secured loan.

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clearsmokeecigs.com There are two categories of bad credit loans and these are non-secured bad credit loan and secured bad credit loan.
This category pertains to bad credit loans where no collateral has been pledged by the borrower. Only a signed promise of payment made by the borrower is the only thing the lender is relying on. It is due to this that non-secured bad credit loans are also referred to as signature loans.
An advantage of this type of bad credit loan is that the borrower does not need give out any his personal effects, which will serves as collateral, to get a loan. However, non-secured bad credit loans would usually have very high interest rate sometimes nearing the maximum interest rate allowed by the applicable state for consumer loans.
For this type of bad credit loan, the borrower would have to provide collateral against the loan. Cars, furniture, houses and other valuable objects are some items used as collateral.
If payment is not made by the borrower on the specified time, the lender can then get the pledged collateral as payment for the loan granted.
The interest rate given to a secured bad credit loan will definitely be lower than the non-secured loan. The downside of this type of bad credit loan is that the collateral given may be turned over to the lender.

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