Discover How Hard Loan Lending Institutions Work

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wikihow.comThe next step is to find a bank or finance personal loan institution to give you a loan. You now have a bad credit record so lenders will prefer you to take a secured loan. This will mean that the loan has to be secured against either your home or some other collateral that has the equivalent value as the loan.

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Unsecured loan: Like the name goes, this loan doesn't require you to give any kind of security against the loan. You can get an unsecured loan only for small amounts and it is issued only if you have a good credit. Since there is no security with the bank or what is a personal finance company, the interest rate is higher than that of a secured loan.

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