Share Secured Loans are a great way to build credit, or unlock your CD or savings into a low cost loan
Build Your Credit
Benefits of a Share Secured Loan
Share Secured Loans are relatively easy to obtain because you are offering collateral to secure the loan. One of the biggest advantages of this type of loan is that you can restore your credit with less stress or risk.
Share Secured Loan benefits:
- Quick and easy loan approval process
- Competitive interest rates
- Flexible terms
- Easy repayment options
- Higher loan limits
- Build your credit as you pay back the loan
- Available for CD, Money Market or Savings Share Accounts
How Share Secured Loans Work
With a Share Secured Loan, you borrow against the money in your Share Account. As you make the monthly payments on the loan, your credit score could improve. The loan is secured by your savings account, share certificate account, or money market Share Account.
While you’re paying on your Share Secured Loan, the collateral in your Share Account is in a hold status. Once you pay off the loan, your collateral funds are released for your use.
The interest on Share Secured Loans is extremely low. Since your Share Account earns interest or dividends, the actual cost to borrow with a Share Secured Loan is minimal.
Who Are Share Secured Loans Good For?
While there are a variety of reasons Share Secured Loans are the right choice, there are a number of factors that make someone a good candidate for this type of loan.
You might be a good candidate if:
- You are looking to build their credit
- You are interested in saving for future loans
- You want to protect you savings
Ways to Use a Share Secured Loan
Share secured loans can be used however you'd like, but it’s smart to use the loan as a necessity or way to pay less interest on existing debt.
Some common ways to use them include:
- Home repairs or renovations
- Medical expenses
- Debt consolidation
- College tuition
- Unexpected expenses
Share Secured Loan Rates
With Members Choice Credit Union, you’ll always get a competitive rate because we put our members’ financial success first. Click to see our Personal Loan rates and then use our calculator to estimate your monthly payments and loan payoff date.