Photo by John Lloyd
Will You Need Collateral?
Depending on your credit score you may be asked to put something up as collateral for the loan. If you have a vehicle with a clear title, you may have to let the institution put a lien on that title. However, you must be the owner of the vehicle in order to use it as leverage for the loan.
You can also get a secured home by offering other assets such as your home or bank accounts. Remember, the institution can put a lien on your property if you fall behind on payments. Be careful that you do not offer up a high-value item that you cannot live without, and avoid using family heirlooms or other irreplaceable, sentimental items as leverage.
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