Perfect for teens trying to build credit for the first time, (with a little help from their parents) and great for rebuilding credit. Savings Secured Loans are the perfect loan option to increase your credit no matter where you're starting from. As the name implies, you secure your loan with savings you already have at America's Credit Union.
Secured loans require collateral. When you purchase a vehicle with an Auto Loan, the vehicle is the collateral for the loan. Your home is collateral when you get a Mortgage. A Savings Secured Loan means your collateral is money you have in savings. You can use funds in your Savings Account or Certificate of Deposit to secure the loan.
These can be great loan options for teenagers to start building their credit with little risk!
Savings Secured Loans offer a lower fixed-rate than a Personal Loan because they have collateral. This makes them a better choice for building or repairing credit. Your monthly payment won't change and you'll be paying a lower interest rate while your credit improves.
Savings Secured Loan Features
- Low, fixed rate.
- No application fee.
- No prepayment fee.