These hypothetical stories could become real through collateral. A ‘Collateral’ is a convenient form of borrowing irrespective of your credit score by pledging some asset that you already own as security for repayment of a loan, to be forfeited in the event of a default. Collateral is property or other assets that a borrower offers a lender to secure a loan. The day all the loan is paid off by the borrower is the day that the asset will no longer be collateral, and the lender won’t have any rights to the asset.
Have you ever felt helpless and dejected about your financial state when you’ve probably found the best home that you could ever think of or have been struck by a creative entrepreneurial business idea or found a decent, reliable car that could change your future life? These fortunes, if not for your current financial state, could change your life for good either by cutting down on rent every month henceforth, by becoming an independent business owner or initiate a side gig being an uber driver!
Qualifying Conditions
BHM Financial Group specializes in lending secured loans up to $25,000 through collateral pledging. The assets that qualify as a collateral for securing a loan here would include fully paid out vehicles-car, truck, RV trailer, homes, etc. There would obviously be additional conditions like the ones below if you are pledging your car for a secured loan.
- Your car has to be less than 8 years old.
- This has to fully paid off.
- Must have a clear title (not leased and no outstanding loans on it).
- Thecar insurance, including collision and comprehensive coverage.
- You have a steady income.
Meeting the above conditions is not a great hurdle if you have something larger in your mind that will improve your current state of living and change your fortune.
This way, a collateral mortgage can benefit you in the monthly payment of your mortgage. It is also starting a new business despite of pledging something that you fully own. You will even save some amount of money as you will incur a lower annual percentage rate or APA. This would otherwise be higher.
If you see a bright spark in something next time. In this case, don’t brush it off. And this is due to your inability to arrange for finances to meet that aspiration. Think of an asset that can double up as collateral. Constantly, go ahead and work towards turning the dream into a successful reality. BHM Financial Group is always here to help you!
Learn more about securing a collateral mortgage here.
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