GCTFCU Blog | All posts tagged 'Secured Loan Killeen TX'

Secured Loan: Eligibility & Benefits

14. July 2021 Administrator Blog (0)

Understanding Secured Loan

28. June 2021 Administrator Blog (0)

A secured loan is a loan that is backed by collateral in the form of financial assets as a means of ensuring that the borrower makes timely repayment. Secured loans are the best option for anyone looking for convenient and affordable loans with simple eligibility requirements and flexibility.

Here are some things to know about secured loans:

They Require Collateral: Collateral is usually in the form of any financial asset. Secured loans are secured against collateral which can be used by a lender to regain the loan amount in case it is not repaid.
Low Interest Rates: Secured loans are available at lower interest rates as they are pledged against collateral. This makes them a good choice for those on a restricted budget; one can borrow huge amounts as these loans are perceived to be safer in terms of repayment.
Flexibility: Secured loans are highly flexible as far as repayment options, loan approval and customization options are concerned. Repayment options can be fixed or variable depending on the requirement of a borrower. The loans can be customized to suit the personal and financial needs of a borrower.
Eligibility: Even though every financial institution has a unique set of requirements for a secured loan, some of them are common. For example, in order to avail a secured loan from a credit union, one must be credit union member, possess assets that match the value of the loan or exceed it, produce proof of identity, proof of residence and more.
Factors To Consider: When getting a secured loan from a financial institution, consider the type of collateral you are willing to provide, whether the interest rate is fixed or variable, the APR (Annual Percentage Rate) and interest rate, fees charged by the lender, minimum and maximum amount of loan, income requirements and more.
Preparing For The Loan: Before getting a secured loan, check your credit, get your assets evaluated to know how much you can borrow and suitable monthly repayments. Some financial institutions like credit unions offer online facilities that enable members to apply for a secured loan online.
Defaulting: In case one misses the payments for a secured loan, the financial institution that granted it has the right to repossess the asset that was used as collateral. Every state has different laws regarding this procedure i.e. some require a notice of repossession while other waiver it. If the repossessed asset is not sufficient to compensate for the amount of loan, the borrower will have to cover the difference.

Contact Greater Central Texas Federal Credit Union to buy secured loan in Killeen, TX. For more details on secured loans, visit 3305 E. Elms Rd., Killeen, TX - 76542. You can also call at (254) 690 – 2274.

Tips To Choose Suitable Secured Loan

29. December 2020 Administrator Blog (0)

A secured loan is a type of loan in which the borrower pledges an asset as collateral for the loan. The loan amount depends upon the value of collateral. A major benefit of secured loan is its affordability in terms of low interest rate.

The choice of a suitable secured loan depends upon a variety of factors. Here are some tips to help you choose suitable secured loan:

1. Loan Amount: The foremost considerable factor is to choose the right loan amount. It is imperative as the loan amount has major impact on rate of interest, EMI, etc. For choosing right loan amount, consider the actual need and the funds available with you. However, make it a point to choose a loan amount that you actually need. Borrowing higher loan amount can have an impact on your financial situation in the future.

2. Collateral: The choice of collateral is important for ensuring loan approval. The value of collateral should be either equal to or higher than desired loan amount. Ask the credit union about allowed collateral and required collateral value.

3. Loan Tenure & EMI: The choice of loan tenure and EMI are inter-dependent. Longer loan tenure results in lower EMI and vice versa. So, when choosing the right loan tenure, focus on choosing the right EMI. Here are some steps that may help you in choosing right EMI:

Consider your monthly income including total monthly salary and income from other sources.
Calculate monthly expenses by adding bills, general expenditure, etc.
Add monthly savings to the monthly expenses to calculate total monthly expenditure.
Subtract total monthly expenditure from total monthly salary.
The resulting value can be used as maximum affordable EMI.

4. Rate Of Interest: Rate of interest is governed by type of loan, loan amount, loan tenure, etc. So, consider the variables to check suitable rate of interest.

A great option is to contact the credit union staff for professional assistance in deciding suitable secured loan. The professional team analyzes the financial situation to suggest suitable loan parameters.

Greater Central Texas Federal Credit Union offers affordable secured loan to its members. Members can apply for a secured loan online or by visiting the credit union. For more details on tips to choose suitable secured loan, visit 3305 E. Elms Rd., Killeen, TX - 76542. You can also call at (254) 690 – 2274.

Why Is Secured Loan A Good Option

21. November 2019 Administrator Blog (0)

A loan that is backed up by any collateral is known as a ‘Secured Loan’. Collateral can be in the form of a financial asset owned by the borrower such as a house, car, precious jewelry, commercial property, etc.

Reasons for which secured loans are considered an effective way to borrow money from Credit Unions are:

Rate Of Interest: Credit unions offer secured loans at competitive interest rates. Secured loans typically have fixed interest rates so, a borrower’s monthly payments remain consistent in spite of changes in market trends.
Bigger Loan Amount: The borrowers can apply loan for a larger amount provided collateral is satisfactory. This makes a secured loan apt for large investments such as purchasing a new or used car.
Improves Credit: These loans help borrowers with low credit ratings to improve the same over time. As a borrower repays a secured loan according to the schedule set out by the loan officer, a positive track record is established and the credit score improves. A secured loan also improves credit score by lowering your credit utilization ratio.
Flexible Terms: Those who borrow secured loans enjoy flexible terms of repayment as per the options offered by the credit union. The term of the loan can be set to match the financial circumstances of the borrower. These loan term may range from a few years to a longer stretch.

Greater Central Texas Federal Credit Union offers secured loans to its members. In order to be a member of the credit union; the applicant should live, work or worship within the area of Bell County, west of I-35. The credit union provides secured loans at competitive interest rates. The loan can be used to buy new or used cars. The credit union members are also offered the option to apply for the loan online. The loan officers assist the applicants in understanding the loan process to help them choose suitable loan amount and terms. To know more about why secured loan is a good option, visit 3305 E. Elms Rd., Killeen, TX – 76542. You can also call at: (254) 690 – 2274.

Things To Know When Applying For A Secured Loan

23. October 2019 Administrator Blog (0)

View Full Image

How To Apply For A Secured Loan

17. September 2019 Administrator Blog (0)

With lower interest rates, secured loans are one of the favorite funding source for borrowers. The reason for lower interest rates in case of secured loans is the fact that lenders asks for a collateral as security against the amount financed. Examples of collateral used for secured loans are funds in the savings account, certificate of deposits, valuable property such as house or a commercial property, etc. It is important to know that the value of collateral should be equal to or greater than the loan value.

Following are some points worth considering when applying for a secured loan:

Your Financial Situation: Before applying for a secured loan, the first thing to do is to assess your financial situation. Figure out how much loan you need, suitable loan term, feasible EMI, etc.
Credit History: Once you have made up your mind to get the loan, check your credit history and see how it will affect your loan application. A good credit score increases your credibility.
Loan-to-Value: Assess the loan-to-value in order to know your borrowing capacity and the interest rate that will suit your financial circumstances. A lower loan-to-value translates into a better interest rate.
The Interest Rate: Inquire about the interest rates offered when looking for a secured loan. Ask the loan officers about suitable options and ways to secure a better rate.
The Term Of The Loan: The period over which you have to repay the loan also impacts the cost of the loan. A shorter period of repayment may lead to higher interest rate and vice versa.
Fees And Monthly Payment: When obtaining a secured loan, keep in mind that it involves various payments such as application fee, loan origination fee and cost of appraisal.
The Application Process: Credit Unions offer borrowers the choice of applying online. During the process, applicant is required to provide details such as the name, address, date of birth, income and employment status, etc.

Visit Greater Central Texas Federal Credit Union to apply for secured loans. The credit union offers secured loans on low interest rates to its members. For more information on how to apply for secured loans, visit: 3305 E. Elms Rd., Killeen, TX – 76542. You can also contact: (254) 690 – 2274.

Reasons To Borrow Secured Loan

17. May 2019 Administrator Blog (0)

Secured loans, also referred to as collateral loans are backed by an asset (usually a home or car) that is pledged as security to the lender. You can also get a secured loan against your savings account, a certificate of deposit or anything of value. In case the borrower is unable to return the loan, the lender has the right to take possession of the collateral and sell it to compensate for the unpaid amount. Lenders often seek collateral that is of a greater value than the amount of loan.

Common types of secured loans are mortgages, secured credit cards, secured personal loans and home equity loans. Secured loans offer numerous benefits to the borrower, some of which are listed below:

Enhances Credit Rating: Secured loans are easy to acquire even if the borrower’s credit rating is low. However, a borrower can work towards building his credit score over time by making timely payments towards his secured loan.
Lower Interest Rates: Another major reason for borrowing secured loans is their rate of interest. Since the loans are secured with a collateral, lenders feel more confident and may disperse loans at lower interest rates.
Flexible Terms: Borrowers who avail secured loans enjoy flexible repayment terms. A consumer can choose a repayment schedule that suits his financial circumstances. The repayment terms may be as long as 30 years. Lenders offer longer terms because real estate pledged as security, usually appreciates over time and this adds to the value of collateral while the loan is being repaid.
Usage: Secured loans can be used for a variety of purposes provided the purpose is legally valid. A consumer can use the money for investing, home improvement, weddings, funeral expenses, moving expenses, etc.
Larger Loans: With secured loans, borrowers enjoy the benefit of being able to borrow larger amount of money for a longer duration. This is because of collateral in the form of tangible assets guaranteed to the lender by the borrower. Lenders know that if for any reason the borrower defaults to pay back the loan amount, collateral can be sold to recover the unpaid amount of loan.
Easy To Acquire: The main requirement for a secured loan is collateral. Thus, if you have collateral in the form of a valuable asset such as a piece of real estate, a car, precious jewelry, a house or deposited cash, you can easily acquire a secured loan.

Greater Central Texas Federal Credit Union offers affordable secured loans to its members in Killeen. The loan officers at the credit union help the members in choosing loan amount and terms as per their financial situation. To know more about secured loans in Killeen, call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX - 76542.

Benefits Of Taking Secured Loan

28. February 2019 Administrator Blog (0)

View Full Image