GCTFCU Blog | Secured Loans In Killeen

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.

Advantages Of Credit Union Auto Loans

Buying the car of your dreams is a great achievement that can only be fulfilled if you get a good car loan from a trusted lender at a decent rate of interest. One of the best options is to apply for a car loan from a credit union.

Although there are numerous lending options available in the market, getting an auto loan from a credit union is easier. Credit unions have the funds as well as amicable relationships with car dealers. This makes them one of the most trusted lending organizations when it comes to providing car loans.

Below is a list of advantages associated with getting a car loan from a credit union:

Favorable rate of interest: Credit unions are non-profit organizations that work for the benefit of their members. Therefore, you will get a lower rate of interest on your car loan from the credit union. A favorable rate of interest can significantly affect loan repayment amount and contribute towards great savings for you.

Fewer formalities: When you apply for an auto loan from a credit union, there are fewer formalities and lesser paperwork involved during the whole process. All you need to do is become a member of the credit union and then work towards the loan application process. There are also no hidden charges or fees involved.

Better customer service: Credit unions offer an impressive standard of customer service and their only motive is to pass on the profits to their members. When you apply for an auto loan, all the financial information will be provided to you in a simple manner. The final approval also does not take much time and you can expect to get a loan without much delay.

Shorter loans: Credit unions provide their members with an option of choosing their loan term. A longer loan term is equivalent to more interest and can put a financial burden on you. But when you opt for a shorter loan term, the monthly installment might be high but you will have to shell out lesser rate of interest.

Relaxed membership requirements: It is very easy to become a member of a credit union. The membership requirements are not stringent and almost anyone can join. Another advantage is that credit unions are more in sync with the local communities and can make the auto loan process much easier for you.

Beneficial for members: The credit unions are always working towards providing incentives to their members in the form of lower interest rates on the loan and saving amounts. Since profit is not on their agenda, they take utmost care of their customers and provide optimum services.

For auto loans in Killeen, TX, look no further than Greater Central Texas Federal Credit Union. We can be contacted at (254) 690 – 2274.

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