Share Loans & CD Secured Loans

Yes. Making your payments on time and paying off the loan in accordance with its terms can help you create a positive history that can have an effect on your credit score.

Whether you're looking to build good credit or borrow money at a low rate, SCCU makes the application process for a Share Secured Loan or CD Secured Loan simple. If you want to borrow an amount that's equal to or less than the balance in your Shared Savings Account or Certificate of Deposit (CD), start your online loan application today. If you have questions about any of our personal loans, please contact us to get in touch with a loan officer.

Share secured loans can help you obtain the funds you need while the money in your CD or savings account continues to earn dividends. These are some additional advantages:

• A share secured loan can help you rebuild or establish your credit history.
• Since a share secured loan is based on funds that you have in an account with Space Coast Credit Union, the loan can be easier to obtain than an unsecured loan, and approval usually takes place quickly.
• SCCU offers low credit union interest rates. Share Secured Loan rates are 3% above the variable dividend rate on your savings account and CD Secured Loan rates are 2% above your fixed CD rate. Contact us for details on the most up-to-date secured loan interest rates.
• Maximum limit: With a Secured Loan from SCCU, you may request up to 100% of the balance in your regular savings account or CD.

To make sure that borrowing against your savings account or certificate of deposit (CD) balance is the right financial strategy for you, consider these factors:

• There is a risk of losing the funds in your savings account or CD that you used as collateral if you are unable to make the payments on the loan.
• No loan comes without some costs—a share secured loan will still require you to pay interest fees. For some small purchases or expenses, it may be better to use the funds from one of your financial accounts.

For information on SCCU's CD Secured Loan rates and Share Secured Loan rates, please call one of the following numbers:

• Brevard: 321-752-2222
• Broward: 954-704-5000
• Miami-Dade: 305-882-5000
• All other areas: 800-447-7228

You may use the funds from the loan for any legal purpose, such as paying for a home improvement project or a repair on your car, or consolidating higher-interest loan, such as a student loan. Be sure to consult a financial or tax advisor if you plan to use the funds from a share secured loan to pay off debt that may have tax advantages.

Since these loans use a borrower's assets as collateral—such as the funds in a savings account—the assets can be seized by the lender. Repossession of collateral will negatively affect a borrower's credit score and stay on his or her credit report for several years, so it's important for a borrower who is concerned about being unable to pay on the loan to contact the lender immediately. Most lenders prefer to help borrowers resolve issues before putting a lien on the borrower's assets.

A CD secured loan uses the balance in your certificate of deposit (CD) as collateral against which you can borrow. At SCCU, our CD Secured Loans offer low credit union rates and flexible loan payment periods to help meet your immediate financial needs without a lengthy, complicated loan application and approval process.

A secured personal loan is a type of consumer loan that is backed by your financial assets, such as a bank account, house or vehicle. Assets, or collateral, can be used to pay back the lender if the secured loan is defaulted upon. Another type of personal loan is an unsecured loan, which does not involve collateral.

Most credit unions offer their members a way to borrow using their own credit union savings as collateral. When you have a share secured or CD secured loan, a hold is placed on the amount in your savings account or CD you are borrowing against. With most of these loans, you may make your monthly payments via automatic withdrawal, check, or direct deposit. A Shared Secured Loan from SCCU allows you to borrow against your savings instead of having to use your savings for a purchase.

Any member of Space Coast Credit Union may take advantage of the low credit union rates and fast application decisions that our Share Secured Loans and CD Secured Loans offer when they need immediate financing for a purchase or to meet an unexpected expense. These loans may be particularly beneficial for borrowers whose credit may prevent them from qualifying for some other types of loans, but who have the ability to pay on the loan and wish to rebuild a good credit history.