Ask Oportun: What’s the difference between a secured personal loan and a standard personal loan?
The simple answer: A secured personal loan requires you to provide collateral for your loan, while a standard loan does not. According to the Consumer Financial Protection Bureau, collateral is an asset that secures a loan or other debt. Both standard and secured personal installment loans allow you to repay your loan in multiple payments over a period of time. They both accrue interest and can have a positive impact on your credit score, if reported, when you make your payments on time and in full. How do lenders decide if they need collateral? It’s all about risk. When it...Read more
What is a secured personal loan?
A secured personal loan is a loan backed by something of value that you own, also called collateral. Many types of assets can be used as collateral, such as your car or home. Because of the collateral, lenders take on less risk and can offer better pricing or larger loans. According to the Consumer Financial Protection Bureau, collateral is an asset that secures a loan or other debt. How does that benefit me? There are three major benefits to securing your loan with collateral. Because a secured loan reduces the risk for the lender, many lenders can: Approve you for...Read more
3 Questions to ask yourself before applying for a loan
Life is full of surprises, and some of them require extra cash. You may have the opportunity to move into a bigger and better rental apartment, but need cash for the security deposit. Or your car might break down and need repairs. Or perhaps you need money to help a loved one with a health situation. Whatever the reason, you may need more cash than you’ve been able to save. One of the solutions to cope with these “surprises” is to apply for a personal loan. Getting a loan is a real responsibility. The debt will need to be repaid....Read more
Laura’s story and how her loan choice affected her life
How much of a difference can it make to choose one kind of loan over another? A huge difference. Read Laura’s story about her possible choice of payday or an installment loan to find out. Laura lives with her husband and kids in Departamento 15, an area known as “El corredor salvadoreño” in Los Angeles. She and her husband have run a Salvadoran grocery store for two years and she loves her family business. She brags about the food of her country, which she sells in her store, and her friendly smile makes her customers feel like the store is...Read more