If you don't qualify for personal loans, what is your next option? Two words: secured loans. But if you want to apply for a home loan, it is always a collateral loan in itself. The loan it is backed by the title of the house itself. Nevertheless, if you need additional approval security, you may use the following assets.
According to Wasatch Peaks Credit Union — an expert in home equity line of credit (HELOC) from Ogden, Utah — assets that you can use as a collateral loan are:
A home equity line of credit is one of the surest ways to secure a loan. If you opt for a second mortgage, you may use your home equity on the first mortgage to secure such loan. Nonetheless, just make sure that you can shoulder the repayments. There's a risk of losing the equity you've already built up if you default on your mortgages.
An auto equity can also be useful in the same way as the home equity. If you own the car and have documents to prove it, the better. The same goes with if you want to use a boat or yacht as the collateral. Any vehicle with a sizable value you own or currently paying for can the collateral.
Stocks and bitcoins can get you the loan you want as well. Experts would say that it's best to obtain a loan from a private bank. That is, as long as you've already had investments with since it can offer favorable loan terms. In some instances, the lender may extend a credit limit up to the full amount of the loan applicant's investment portfolio.
Savings or certificates of deposit are another way to get a loan. Since it is savings-secured, borrowers can keep the money in their deposit accounts. That means the money still earns interest as you use it as collateral. Know, however, that it will gain interest. You can withdraw the money, but if you may choose to borrow if your goal is to build or repair your credit score.
These are just four of the assets you can use as security when obtaining a loan. While it depends on the amount of money you are borrowing, at times, the car or home equity alone is enough.