Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Checklist Before Getting A Secured Loan

12. March 2015 Administrator Blog (0)
Secured loans are a type of loan, which require the borrower to mortgage a valuable asset as a security for the loan. People prefer secured loans, as they are easier to obtain as compared to the unsecured loans. The secured loans often come with lower interest rates and allow the borrower to get tax deductions. However, it is crucial to do your homework before applying for secured loans with a credit union.

Here is the checklist that you must consider before getting a secured loan:

Check your credit file before applying

Your credit score is a major deciding factor when you apply for secured loan. It will decide the amount that you can borrow and the amount of interest rate that you will pay. Therefore, it is crucial that you check your credit file before applying for a secured loan. This will help you know whether you stand any chance to be approved or not.

Ensure that you can repay

Before applying for a secured loan, it is advised that you should assess your ability to repay the loan amount. Failing to repay the amount can lead to heavy penalty charges.  It will also have adverse effect on your credit file. By not repaying your loan amount on time, you also put your asset, which you have used as security, at risk. You should calculate your monthly repayment amount by using loan comparison tables to know whether you will be able to afford the repayment amount or not.

Decide the loan period

It is important that you choose the right loan period depending upon your budget. A longer repayment time will reduce the monthly payments but increase the interest amount. Similarly, having a shorter repayment time will involve less interest rate but increase the monthly installment manifolds. Thus you should determine the loan period carefully.

Compare the price

When applying for a loan you need to pay certain costs such as initial valuation and legal fee that are included in your interest rate (APR). You must confirm the costs and compare the prices to get the best deal.

Documentation

Depending upon your credit union and the type of secured loan you are applying for, you may be required to submit some financial and legal documents such as lease agreements, articles of incorporation and your financial reports. You should make sure that you have all the documents required to be eligible for applying.
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GCTFCU Blog | What Possessions Can You Pledge For Secured Auto Loans?
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

What Possessions Can You Pledge For Secured Auto Loans?

17. May 2011 Administrator (0)

Secured auto loans like all the other secured loans necessitate the borrower to pledge an asset as security and assurance that the loan will be paid back. In certain cases you may be offered instant unsecured loans but if you look deep, they will prove to be more costly. The secured option implies the borrower offering the creditor with some form of collateral. If the borrower defaults on the repayments then the loaner can confiscate the pledged security and resell it with an intention to retrieve their money.

You will normally require a good credit rating to qualify and be consented for secured auto loans. These kinds of loans are helpful if you want to take up large amounts. Your asset can also be your house, so you must always treat repayments for your loan very important. If secured auto loans are acquired with any holding as an asset, then it is critical to keep up with the repayments. This asset option can appear like a huge commitment but it can ensure you bear the lowest rates of interest possible on your loan for an auto.

There is other stuff you can extend as assurance to the lender like any savings accounts, bonds, stocks, shares or any other valuables. Secured auto loans are a wonderful approach to utilize if you have any such collateral available and are sure you can comfortably make the repayments. By providing adequate security, the loaner is able to provide you with an excellent rate as you have instantaneously brought down your risk potential. Property does not have the same rate of depreciation as new autos, so the loaner has the best security they can perhaps ask for.

The particular assets that you pledge while applying for secured auto loans will provide the creditor a substantive guarantee that they can retrieve losses in the event of defaults.

To obtain cheap secured auto loans easily and quickly, consider Greater Central Texas Federal Credit Union only. We can be contacted at 254-690-2274.

Cheap Auto Loan | 72 Month Auto Financing

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