A secured line of credit is a type of loan that uses your property or assets as collateral. This means that if you default on the loan, the lender can take your property in order to recoup their losses. Because of this, secured lines of credit usually have lower interest rates than unsecured loans. However, there are also some risks associated with this type of loan. Our law firm has all the experience needed to help you with your loan needs. Contact us today to see how we can help you.

Pro: Lower Interest Rates

As mentioned before, one of the main advantages of a secured line of credit is that it usually has lower interest rates than an unsecured loan. This is because the lender has less risk when they know that they can take your property if you default on the loan.

Con: Lose Your Assets on Default 

Of course, the downside to this is that if you do default on the loan, you could lose your property. This is why it’s important to make sure that you can afford the payments before taking out a secured line of credit. We have years of experience consulting with our clients and assessing secured lines of credit.

Pro: Accessible to Lower Credit Scores

Another advantage of a secured line of credit is that it’s more accessible to people with lower credit scores. This is because the lender has less risk when they know that they can take your property if you default on the loan. If you’re thinking about taking out a secured line of credit, we can help you. We have years of experience helping our clients with their financial needs. Contact us today to see how we can help you as soon as possible.

Con: Variable Interest Rates Possible 

One downside of a secured line of credit is that the interest rate can be variable. This means that the amount you have to pay each month could go up or down, depending on the market. This can be risky for some. It is best to consult with an attorney to gauge your financing options.

Overall, a secured line of credit can be a good option for people with lower credit scores who are looking for a loan with lower interest rates. However, there is always the risk that you could lose your property if you default on the loan. Contact us today at 248-572-1050 to see how we can help you and your business.