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

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.

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GCTFCU Blog | Borrowing From A Credit Union: The Benefits
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Borrowing From A Credit Union: The Benefits

13. October 2015 Administrator Auto Loans, Car Loan, Home Loans (0)
A majority of people looking for easy financing options are turning to credit union these days. A credit union is basically a member owned and operated non-profit organization working solely for the benefit of the clients. When you are looking for a home or auto loan, you must consider applying at a credit union to get an affordable deal.

Here are some of the benefits of borrowing from a credit union:

  • Competitive Interest Rates: Working with a customer centric approach, a credit union offers loans at significantly low interest rates as compared to other financial institutions. As they are not liable to pay any state or federal taxes, all their profits are given out to the members in the form of low interest rates.
  • Excellent Customer Service: A credit union always keeps customers’ benefit as their topmost priority. They formulate customized loan products, policies, terms and conditions according to the client’s requirements. Their staff even assists the clients in the loan application process.
  • Lower Fees: The loan application fees charged by a credit union tend to be lower so as to benefit the customers. The transfer fee is also less and usually, there are no ATM charges levied from the clients. This in turn, implies that you can save a lot of money and add to your savings substantially.
  • No Hidden Charges: All the rules and regulations of credit unions are very clear as well as explicitly stated. There are no hidden charges or fines in case you pay back the loan before the stipulated time period.
  • Fewer Income Requirements: In order to be eligible for borrowing from a credit union, you do not need to have a considerably high income. People who have a low income can also get approval for their loan application. The staff at a credit union is more amenable to the clients’ needs and willing to make minor alterations in terms of the loan.
  • Repay Loan Through Various Channels: A credit union allows you to repay the loan through various channels, such as payroll deduction or direct deposit. You can even skip-a-payment once a year in case of a financial crisis.
Greater Central Texas Federal Credit Union is a leading credit union in Killeen, TX. We offer low interest secured and unsecured loans for homes, vehicles, etc. For more information, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX  76542.

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