Tag Archives: secured
Secured Loans and Unsecured Loans- What's the Difference?
Whether you’re new to the world of financing or you’ve done this a number of times before there’s always more to know about your options and what is out there so you can decide what will work best for you and your circumstances. One of the first basic decisions you have to make is whether you want to apply for secured loans or unsecured loans, so, what’s the difference? This article goes over where these options differ so that you can decide what is important for you and your financial situation.
Unsecured loans are based on your financial background, focusing on your income, and your credit history. This is all they have to look at and base their decision to lend to you on. When a lender looks at your credit history they are trying to decide how much of a risk you represent—the risk being that you won’t make your monthly payments on time. When you have a lot of late and missed payments in your financial history this tells them that you are likely to not pay on time. When you are considered a high risk applicant they are less likely to approve your application at all, and when they do, the worse your credit is worse the higher the interest rate they offer you will be. Another key difference when compared to secured financing is that they are much faster to get approval for because there is no evaluation process. All they have to look at is your history and your income, which won’t take them long to judge.
Secured loans are also based on your financial background, like your income and your credit history, but use collateral in addition. The collateral takes the pressure off of your financial history, but that history does still matter. The collateral will be taken if you fail to make your payments. Because there is a way for the lender to recover their money they will be much more likely to approve your application with an iffy credit history, and are going to offer you a better interest rate than they would otherwise. It does take a bit more time however because whatever you are using for collateral has to be appraised to determine it’s worth.
So what option works best for you? This depends on what your needs are exactly. Everyone wants the best interest rate they can get! But is approval time important, and what is your financial history like? These are questions you should ask yourself before determining what is the right path for you when you’re looking at secured loans and unsecured loans.
Citi Secured Depository – Issuing Safekeeping Receipts To Vouch For Assets In America
The banking and lending practices of countries can vary considerably from nation to nation. Some countries’ institutions, when considering issuing a loan to a client, will demand a safekeeping receipt. A common practice in Europe, a safekeeping receipt is often demanded to prove ownership of a particular asset. This practice is not as common in the United States and, therefore, few institutions or companies offer this service. Citi Secured Depository fills the gap, providing US consumers with the safekeeping receipts required by their contacts in Europe.
Different than a normal deposit of monetary assets in a bank, an institution or business which agrees to safeguard a monetary asset remains separate from the asset. Such a business only keeps the asset and, as needed, issues safekeeping receipts; the monetary asset is not owned or in any way usable by the business.
Citi Secured Depository starts by conducting an evaluation of the assets for which a client requires safekeeping. They maintain a roster of experts in various fields of study so as to be able to accurately assess the value of a variety of assets, such as historical documents, trusts, stocks, paper money or coins which are no longer in circulation, and precious metals and gems, artwork and heirloom objects. Monetary assets are evaluated by knowledgeable Certified Public Accountants; gemstones are evaluated by appraisers with Gemological Institute of America designations. Should the expert evaluation staff at Citi Secured Depository not have the necessary skills to properly assess an object, the job of evaluation is contracted to experienced and trusted evaluators in the United States. After the evaluation experts have analyzed and assessed an asset, Citi Secured Depository accepts the asset and arranges to safeguard it. Citi Secured Depository has contracts with many local banking institutions from whom they rent vault space. They place any assets in their safekeeping in the appropriate vault space at an institution local to the asset owner. Citi Secured Depository is then in a position to be able to provide, upon written request of the asset owner, a safekeeping receipt. The receipt can be verified by banking institutions or private parties as required. The fees for Citi Secured Depository services vary according to the value of the asset, the physical size of the asset and the terms of service.
Of utmost importance to Citi Secured Depository is the privacy and trust of their clientele. One might say that trust is Citi Secured Depository’s most valuable asset. They take great pride in protecting the privacy of their clients. Any directives regarding the authentication, safekeeping, or verification of assets is performed only with written consent from the assets’ owner.
Experts in asset evaluation, safeguarding and issuing safekeeping receipts in the United States, Citi Secured Depository is proud to assist and stand by their clients. Innovators in the industry in America, they have the skills and the infrastructure to accommodate their client needs.
For more information or to contact Citi Secured Depository, visit CitiSecuredDeposit.