This page about Wachovia secured loans leads on from our other Wachovia related pages. Coming from a major US bank, Wachovia secured loans garner a certain amount of interest. This article discusses secured loans from Wachovia to outline what they offer.
There is always a debate about which is better: a secured or an unsecured loan. So here are some facts about these 2 types of loans taken from Wachovia.
About Wachovia Secured Loans
Wachovia secured loans are a a type of debt taken on by a borrower who places an asset as collateral against the loan debt to Wachovia. This asset can be a car, in the case of an auto loan or a property in the case of larger secured loan amounts.
A Wachovia secured loan involves less risk for the bank since if If the borrower defaults on the loan, the lender will have the right to repossess the collateral used and sell it to recover the amount of the loan being borrowed. For this reason, Wachovia secured loans project a higher risk factor for the borrower: if they areunable to make repayments they risk losing something of value.
Below are the different types of secured loan offered by Wachovia Bank:
- Wachovia non-recourse loans
- Wachovia mortgages
- Wachovia auto loans
The Difference Between Unsecured and Secured Wachovia Loans
Unsecured loans are the opposite of Wachovia’s secured loan plans: there is no collateral here which means that the lender is exposed to a higher risk. If the borrower defaults on an unsecured loan, the lender can do very little aside from reporting the late payment or default to the credit bureaus. But there is no recourse for the lender to recover the amount of loan that was borrowed.
Apart from the primary difference that is the presence of collateral in case of Wachovia secured loans as opposed to the absence of it in unsecured loans, there are 3 other major differences. Wachovia clears these differences thus:
Borrower’s risk level: The borrower is at a higher risk in case of secured loans because if the loan is not completely recovered through the amount obtained from the sale of the asset, the borrower will be held responsible for paying the difference. So if an individual fails to repay a Wachovia secured loan he may not only lose the asset but will also become liable for additional payments.
Credit Checks: People often prefer Wachovia secured loans because their credit history is not good enough to avail an unsecured loan. Because Wachovia has the authority to repossess assets in the event the borrower defaults on the secured loan, there is a little risk involved. So even though Wachovia will check a person’s credit rating, they don’t attach great importance to it in case of Wachovia secured debts. In contrast to this, you will need to have a near perfect credit history to avail an unsecured loan.
Differences in Terms and Interest Rates: The terms of Wachovia secured and unsecured loans vary greatly. Generally, Wachovia borrowers enjoy lower interest rates and more favorable terms with secured loans. Wachovia will also let borrowers extend the repayment period in case of Wachovia secured loans for a period up to thirty years, while the terms of unsecured loans are extremely rigid.