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December 14, 2007, Newsletter Issue #94: Putting Up Collateral for a Guarantee
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Tip of the Week
If you have poor credit there are finance companies that specialize in guaranteed bad credit personal loans. Most, however, do not deal in unsecured loans. Aside from paying high interest rates, you may be required to put up personal property as collateral for the loan. Collateral is personal property that the lender can seize and sell in the event you cannot or will not pay the loan according to the agreed upon terms. Some, such finance companies, will accept personal computers, assuming it is a newer model, as collateral. Most, however, prefer a clean car title. Before you put your car or computer on the line, think hard about whether you can truly afford to be without it in the event that it is seized.
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