Secured loans are loans that use either a member's share deposit or share certificate as collateral.
Secured loans are a good way to establish or rebuild credit – or to keep your interest rate very low. Here’s how it works: A member would use the money in their account as collateral. The Credit Union would freeze those funds as “insurance” for the loan. As the loan is paid, the funds are released in their account. Meanwhile, the member builds credit (even though they borrowed against their own money) – and, since the loan is secured by their own funds, the rate is significantly lower on this type of loan!
*60 monthly payments of $20.28 per $1000 borrowed at 7.99%.