Share & CD Secured

A share secured loan will help build credit for you, as it will be reported to the credit bureau(s).  The total amount of money available as a loan to you is based on the amount that you currently keep in your share account and your credit union will “hold” those funds until the balance of the loan is paid in full.  The purpose is to allow people to build credit and/or repair credit (in a way in which prepaid credit cards do not, because it is a reported “loan”).  An advantage is you are still able to earn dividends on the funds that are being used as security for the loan.

Features include:

• Extended terms up to 120 months
• Share and Share Certificate can be used as collateral
• Easy qualification
• Lower interest rate than unsecured loans
• Credit life and disability insurance can be purchased and added to the loan

A certificate secured loan is a handy loan product offered by PECU. As with any secured loan, you provide collateral, or something of financial value, to guarantee repayment of the loan. In this case, your certificate of deposit (CD) is your collateral. Secured loans come in many forms, as do certificate loans.  This is a low-cost option for many borrowers.  If you need money, this is a better loan option than paying the early withdrawal penalty to cash out your CD before maturity. It may also be a way to improve your credit rating.

Features include:

• Extended terms up to 120 months
• Share and Share Certificate can be used as collateral
• Easy qualification
• Lower interest rate than unsecured loans
• Credit life and disability insurance can be purchased and added to the loan