Borrowing with collateral is one of the quickest ways to get a loan.
The idea behind borrowing with collateral is actually very simple. Banks and lenders that grant loans want to do so with as much certainty as possible that they get the money they lend back and with interest. That is why they prefer clients with a steady job, a regular income and a good credit history.
But not everyone has a steady job and a regular income. And if you want to borrow money because your other debts are rising and you want to pay it off with the new loan, that is not the basis on which many banks want to provide a loan because they consider it too risky that the loan cannot be be reimbursed.
So if you are actually a risk for the banks because of your credit history, you can offer the banks and the financiers more security with collateral, which means that they are nevertheless willing to offer you a loan. After all, if you are unable to repay the loan, they can get the loan back by selling the collateral and make a profit from it.
The loan amount that is borrowed on the basis of collateral is usually also paid directly on the spot and usually in cash. So if you need cash quickly and you can offer something as collateral then it is usually no problem to have that money in your hands the same day.
Different types of collateral.
Gold and jewelry -One of the collateral most commonly used by private individuals to apply for a loan is gold jewelry and jewelry made of other valuable metals and precious stones. Gold is stable and worth 20 USD per gram. So real gold jewelry at pawnshops where you can borrow cash directly is a very good collateral.
Various electronics – Pawnshops often also accept electronics as collateral. You can think of laptops, cameras, game computers and more of this type of consumer electronics.
Car as collateral – To borrow larger cash you can also give your car as collateral. A car is soon worth several thousand USD and several pawnshops are also willing to borrow cars.
Securities – Securities can also be good collateral. Consider, for example, a life insurance policy and shares or bonds.
Inventory – Entrepreneurs who want to take out a business loan for their company can usually offer the inventory as collateral.
Borrowing gold yields cash quickly
You need a lot of cash quickly and you have gold jewelry at home? You can borrow your gold jewelry at a pawnshop and buy it back later if you want.
Nobody ignores the bad economy. If you are used to regularly buying jewelry for yourself, it may be that you have been doing it less lately, simply because it is going a bit less financially. Or maybe you never buy anything yourself, but you have received a beautiful piece of jewelry and you are now just tight.
The point is that gold is just worth a lot of money. And the heavier (more carat) the gold jewelry, the more it is worth. It may be that you were sitting on top of a small fortune all the time you were short because you have a well-filled jewelry box with various gold jewelry. If so then you are lucky because if the need is man you can very quickly get a lot of cash when you bring this jewelry to the pawnshop.
At the pawnshop you have two choices. You can sell the gold jewelry. You will then receive the maximum price for the gold and any gems that are in the jewelry. But then you will have lost the jewelery. Choice two is that you borrow the golden jewel. That means that you take out a loan with the golden jewelry as collateral.
By then paying an amount of interest every month, you can buy back the jewelry for the amount that you have borrowed at a later time when things are going better for you. For this loan, no further inquiries are made with the BKR as you borrow with collateral. By borrowing gold from a pawnshop you have hundreds of USD or even more in your hands in a matter of minutes.
If you would like to borrow a relatively small amount of money and your gold jewelry turns out not to be gold at all, or you do not want to give your jewelry as collateral for a loan, there is always the option of using an mini loan to borrow up to 750 USD. After acceptance and an SMS from you, the amount that you want to borrow is in your account within ten minutes. For more information or to request a mini loan directly, visit the cashbob website.
When will your loan application be approved and when not?
Anyone who has ever applied for a loan knows that the application must first be approved. Read here how you can know whether or not your application will be approved.
The truth is that there is a loan available for everyone. Only not with every financier. There are financiers who only accept loan applications from people with an impeccable financial condition and there are financiers who specialize in providing loans to people with a bad credit history. Both groups are eligible for a loan, albeit under different conditions and with different rules.
If there is nothing wrong with your credit history, you have a permanent employment contract, you are Dutch by nationality, you can identify yourself and somewhere between the ages of 18 and 68 you can always turn to a financier for a loan, the amount of which of course depends of your income. This is especially true if you have taken out a loan in the past and then paid it back properly. Naturally, a financier can derive a great deal of certainty from this and that is what they like when assessing your loan application.
Do not be surprised if, for example, your application for a substantial loan of 100,000 USD is approved. A family income of a few thousand USD per month can be enough for that.
In the past, having registered with the Credit Registration Office (BKR) in Tiel does not mean that you could not be eligible for a loan.
Indeed, there are financiers who are well aware that this concerns a very large group of people and they see this as a huge market that they can serve and therefore specialize in offering loans to people with a BKR listing.
The fact that you have been registered with the BKR in the past does not mean that you are not financially strong enough to be able to apply for a regular loan. Perhaps your situation has turned for the better and you can simply demonstrate this from your current income and spending pattern.
Even when you are deeply in debt, have multiple loans and outstanding accounts, you can always find a financier who is willing to provide you with a new loan.
Because with a new loan you can, for example, transfer multiple expensive loans into 1 low-cost loan, which means that you can benefit from taking out a new loan. You then pay much less in interest and monthly repayments, which means that you are more likely to finish paying off and you will have more financial room every month. Various financiers can also be found for transferring multiple loans.
The last group of financiers are those who do not look at your credit history at all because the maximum loan amount remains below the limit at which a loan must be registered with the BKR. This then concerns amounts up to a maximum of 500 USD, or so-called mini-loans, whereby the amount of money is transferred to your bank account with 1 text message within 10 minutes. Almost everyone is eligible for this, depending on the amount requested (100 to 500 USD).