Personal Loans – Secured vs Unsecured

Kicked enough tyres? Our personal loans are designed to turn your dream car into reality.

When that magic moment comes and you’ve finally found that one perfect car that jumps off the page and says, “Pick me!”, it’s time to set the wheels in motion and look at the money side of things.

Perhaps you’ve been tantalised by a Torana, fascinated by a Ford Focus, or been swept away by a Skoda.

If you’re like most of us and you can’t quickly sell off some stock options or cash in a property that you don’t need in your portfolio anymore, you might want to explore a personal loan.

If so, it’s worth getting into the details. When you’re buying a car, you would do all the right things like getting mechanical checks and making sure the paperwork is in order, right? It’s exactly the same for a personal loan. It’s worth doing your homework so you fully understand what you’re getting into.

At People’s Choice, we want to make sure you get the personal loan that’s right for you. So, let’s go through some of the options, starting with secured and unsecured personal loans.

What is a secured personal loan?

A secured personal loan lets you use an asset as security for the repayment of the loan. Something of tangible value that ensures your loan can be paid if you are unable to meet your obligations.

There are some requirements to meet to support your application, such as payslips or proof of employment, proof you’ve paid utility bills and been able to pay off a credit card. This is to ensure you’re a suitable candidate.

What are the benefits?

A secured personal loan generally comes with a lower interest rate, a longer loan term or gives you the advantage of borrowing a larger loan amount.

What can I use as security?

The loan could be secured with a car, motorcycle, or caravan that you already own, a term deposit or high value assets. For many people who are looking for a loan to buy a car, the car itself is used as security.

What about an unsecured personal loan?

An unsecured loan doesn’t require you to put up an asset as security. This can be popular with people who want to borrow money to go on a holiday, purchase a number of different things and yes, to buy a used car.

As security isn’t required, generally, you could get faster access to the money being loaned.

What are the benefits?

Firstly, you’re not putting an asset at risk by applying for an unsecured loan. Plus, the loan is simpler to apply for online and the money can usually be used more flexibly.

Are there any downsides to an unsecured loan?

Unsecured loans have strict eligibility criteria, and they may not be right for everyone. They can have higher fees and interest rates than secured loans.

So, there’s a quick rundown on the differences between secured and unsecured personal loans. At People’s Choice, we offer unsecured car loans from $2,000 and up to $40,000, plus we have secured loans from $10,000.

If you’d like to find out how much you can afford, we have a handy personal loan calculator that shows you how much time and interest you could save by making extra repayments.

Why choose People’s Choice for a personal loan?

We’re a bit different. In a good way.

People’s Choice is a credit union and we’re 100% owned by our members. Any profit we make is invested back into creating products that make a difference to our members. We’re more about giving great advice and providing quality service than providing returns to shareholders. We put people before profit, in other words.

People’s Choice has some of the most competitive rates in the market and we want to create positive change for individuals, the community, and the environment. We’re fighting the good fight for the good of our people. If you’d like to know more about us and what we do, jump online today at www.peopleschoice.com.au/

If you’re ready, you can apply online here. Otherwise, you can have a chat with us on 13 11 82 or visit us at a local branch.

If you’re keen to get behind the wheel of your dream car, a People’s Choice personal loan might be the way to get you moving.

 

This article is for information only and is not intended to constitute financial advice. Any views expressed are the views of People’s Choice Credit Union solely. This information must not be relied on as a substitute for financial planning, legal, tax or other professional advice.

People’s Choice Credit Union, a trading name of Australian Central Credit union ABN 11 087 651 125, Australian Financial Services Licence and Australian Credit Licence 244310. In this article, People’s Choice Credit Union is referred to as People’s Choice.