Secured Personal Loan
Loans to fit your needs.
The Red River Credit Union offers ways to improve your credit score with a selection of deposit-secured loans. When the loan is paid off, funds are released for your use.
- Quick approvals
- Convenient eSign*
- Multiple payment options
Rate and term based on credit score. Rate subject to change without notice. With Approved Credit.
* Some restrictions apply to eSign.
What Is A Secured Personal Loan?
When searching for the right personal loan, it’s important to know what factors go into each type of loan and how it can affect your rates, terms and credit score. A secured personal loan is backed by collateral that you own.
If you have personal assets that could be used towards collateral, a secured personal loan may be the right choice for your financial journey. With this loan, the lender does have the ability to take possession of your collateral if the loan is not paid.
Benefits Of A Secured Loan
Unsure of which loan type is right for you? Take a look at the advantages of secured loans to help make your decision.
- Looking to increase your credit history but having trouble with your current score? A credit builder might be a good idea for you.
- In some cases, a secured loan is easier to obtain due to the collateral you are putting down to repay the loan if needed
- Typically, larger loan amounts can be given to borrowers in comparison to an unsecured loan
Choosing the right personal loan type is important for your financial journey. Contact Red River Credit Union for more information on getting started today.
Secured Personal Loan Vs. Unsecured Personal Loan
When applying for a personal loan, it’s important to understand the various types of loans and the difference between secured vs. unsecured. The main differentiation is that a secured personal loan is backed by assets that you own. Types of collateral could include your home, using a vehicle as collateral, savings and more.
While a secured loan means putting up collateral, an unsecured personal loan is the opposite. No collateral is needed to obtain an unsecured loan, meaning that the lender does not have access to your property. Lenders will typically look towards your credit scores and credit repayment history to determine if you are eligible.
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Secured Loan Rates
Rates Effective: 9/27/2023
Loan Type Term APR* As Low As Share Secured up to 60 months 2.10 Credit Builder up to 12 months 2.10 Certificate Secured up to 12 months 2.00% Above Certificate Rate Money Market Secured up to 60 months 2.10 *APR = Annual Percentage Rate. Rate and term based on credit score. Rate subject to change without notice. With Approved Credit.
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Unsecured Personal Loan
An unsecured personal loan is a great option to when taking out a loan to establish credit, tackle home improvement expenses, debt consolidation and more without having to offer collateral as a repayment option.
Instead of collateral, unsecured personal loans are typically based on credit history and income. The lender does not have access to your possessions, and offer flexible payment terms budget-friendly monthly payments.
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Credit Builder Loan
Start building credit today
The RRCU Credit Builder Loan is a great way to build your credit. This loan is specifically for helping to start or re-establish credit history and your payment history reports to all three credit reporting agencies!
Who should apply for a Credit Builder Loan?
- People who have not yet built their credit history
- People seeking to improve their credit
Three easy steps to apply:
- Request a Credit Builder Loan - Go to your local RRCU branch or apply online. Request a "Credit Builder Loan' and complete a short application.
- Make your payments - Your loan funds are held in your savings account while you make payments for the full term of the loan. Making a regular monthly payment through completion of the term allows you to establish a regular payment history on your credit report.
- Receive your funds - Once your loan is paid off, the funds will be released and available for your use. Dividends earned are released monthly throughout the loan term and are available for your use right away. RRCU reports your payment history to the credit bureaus, which can help demonstrate your creditworthiness as a future loan candidate.
FAQs
Anything else I should know about a Credit Builder Loan?
- A Credit Builder Loan does not provide immediate funds for member use. Instead, the funds are secured in a savings account or share certificate until the loan term is complete.
- You can request an amount up to $2000.00 for your Credit Builder Loan with a max term of 12 months.
- Members ask if they can pay off their Credit Builder Loan early. However, regularly scheduled monthly payments are important for building credit. If you secure a Credit Builder Loan, you should plan to make regular payments through the loan’s scheduled completion date.
What is a Credit Builder Loan?
A Credit Builder Loan is a loan designed to assist members with no credit or past credit to assist in building a better credit history. The money borrowed is secured in the member’s savings account.
How much will a Credit Builder Loan improve my credit score? Many different variables can affect your credit score, so there is no standard on how much a Credit Builder Loan will improve a credit score. However, your credit report will reflect your successful completion of on-time, scheduled payments, which shows your commitment to improving your credit.
Is there a fee to get a Credit Builder Loan? Applying for a loan is fee-free. With a Credit Builder Loan, you will be required to pay interest on the loan, but you’ll receive a portion of that interest back in dividends on your funds (savings) monthly throughout the duration of the loan.
Once I pay off the Credit Builder Loan, will I qualify for another loan with RRCU? Successfully completing a Credit Builder Loan does not automatically qualify you for additional loan products. However, the Credit Builder Loan is reflected as being paid on your credit report so RRCU will take this into account as a reflection of your financial responsibility.
What happens if I miss a payment or stop paying on the loan? Late payments and defaulted loans will be reported to all three credit reporting agencies.
What's the difference between a Credit Builder Loan and a payday loan? A Credit Builder Loan allows you to hold a specific amount in an RRCU savings account or share certificate and make regular payments until you’ve paid the full loan amount.
This loan option is intended to help you build a strong payment history that can be reflected on your credit report and considered when you make future lending requests. All at great rates.
Payday loans, which RRCU does not offer, provide instant funds for use, often at extremely high interest rates. If you currently have a payday loan and are struggling with high interest rates, you may want to consider talking with an RRCU loan officer to see if we can help.
* APR=Annual Percentage Rate. With approved credit. Rate and term based on year model, amount financed and credit score. Rates subject to change.
