Score Up in conjunction with Wardle Consultancy Services Pty Ltd are linked with a number of brokers and lending companies and therefore can help take the hard work out of applying for a loan.

We can liaise with all lenders or broker firms to ensure that all aspects of your application are covered to ensure that prior to the loan being submitted, you meet all responsible lending criteria in accordance with Australia’s governing laws and your Credit Report issues will not hold you back.

Please review a summary of Secured and unsecured Personal Loans so you can familiarise yourself with what these loans mean:

Secured Personal Loan

A secured personal loan is a loan guaranteed by an asset, such as a car.

The lender uses this asset as security, which means that if you don’t make the agreed repayments the lender can take possession of the asset and sell it to cover the cost of the loan.

To understand how a secured loan works, think of a typical auto loan. In exchange for the money you need to purchase a car, the lender uses collateral—in this case your new car—as a form of security. If you fail to make your loan payments, the lender can repossess your car, sell it and use the proceeds to help pay off your debt.

Mortgages and home equity loans use your home as collateral.

Secured credit cards and personal loans require a cash deposit. Title loans let you use collateral (often the equity in your car) to borrow money.

What all these loans have in common is the lender’s ability to take possession of valuable property you’ve pledged if you don’t pay your loan as agreed.

The upside for you, the borrower, is access to credit. Without collateral, you might not be able to borrow hundreds of thousands of dollars to buy a home. Because secured loans are considered less risky, interest rates are often lower than they would be without collateral.

Unsecured loans

Unsecured Loans can have lots of advantages, including:

No risk to your personal property.
If you can’t pay your loan due to unforeseen circumstances, you won’t lose your home or other assets.

A variety of uses.
You can use the money for purposes ranging from a holiday or a wedding through to debt consolidation or medical expenses.

A lower interest rate than many credit cards.
If you’re currently paying a high rate on your credit cards, you could consider consolidating your debts onto a personal loan with a lower rate to save money.

Control over your repayments.
With a personal loan, you can choose a repayment term and amount that is right for you, so you know right from the outset when your debt will be paid off.

Unsecured loans don’t involve any collateral.
Common examples include credit cards, personal loans, and student loans. You’ll generally need a strong credit history and a higher score to qualify for an unsecured loan.

Unsecured loans typically come with higher interest rates as well.
Think of the difference between the average mortgage rate and what you might pay annually on a credit card. But with an unsecured loan, you aren’t risking any collateral, and that may counterbalance some of the additional risk you shoulder when you take on high-interest debt that will be more difficult to pay off.