What is a Cash Secured Loan with Domuso?
A cash secured loan is a loan that you guarantee by depositing funds with Domuso when you take out the loan. It is a good credit-building tool. You may qualify for a cash collateral loan even when you do not qualify for a standard installment loan because the cash collateral reduces the risk of the loan for Domuso, allowing us to approve more applicants.
What is Cash Collateral?
You’ll pledge a fixed amount of cash as collateral, meaning Domuso will keep the funds if you fail to repay the loan. As a result, it will be easier to get approved. If you can’t qualify for our standard installment loan, then a cash secured loan is a good option.
How much cash collateral is required?
Based on your risk profile, Domuso will require cash collateral that ranges from 10%-100% of the requested loan amount.
Why should I take out a cash secured loan?
You can use a cash secured loan to pay your monthly rent, move-in balance or move-out balance. Using a cash secured loan allows you to pay the full amount on time by depositing the partial amount with us and starting your monthly payments.
For example, if you owe $1000 to your property and qualify for a $200-cash collateral, $1000 will be paid to your property up front and you will deposit $200 of collateral and begin making monthly payments. Once you have paid off your loan, you will be refunded $200.
Cash secured loans are a good way to rebuild your credit. We report your payment history to the credit bureaus.
What is the point of taking cash secured loan with 100% cash collateral?
If you have bad credit or no credit then it is often difficult to qualify for a loan. Domuso offers 100% cash secured loans to help you build or rebuild your credit. When you take out a loan with us and make timely, monthly payments we will report your payment history to the credit bureaus thus helping you improve your credit history. With an improved credit history, you are more likely to qualify for an unsecured loan, auto loan, or mortgage in the future.
What happens if I default on my loan?
If you default, meaning you are unable to pay back the loan as promised, then Domsuo will recover any outstanding balance (principal, interest, fees, etc.) on your loan and then refund any remaining balance from your cash collateral. If the outstanding balance is more than the cash collateral, you will not receive a refund.