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

Ways To Get Out Of Debt

21. May 2019 Administrator Blog (0)
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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.

Savings Accounts Offered By GCTFCU

30. April 2019 Administrator Blog (0)


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How Does A Credit Union Work

26. April 2019 Administrator Blog (0)


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Credit Union Terms

16. April 2019 Administrator Blog (0)
A credit union is a financial cooperative that is created, owned and operated by its members. It provides credit at competitive rates in addition to a plethora of financial services to its members.

Following is a list of some terms that are commonly used in credit unions:

  • Account Agreement: The agreement that determines membership eligibility, conditions for share accounts and other banking operations.
  • Accrued Interest: Interest that is due but has not yet been paid to an account holder of a share account. It can also be due interest that has not yet been paid to the credit union by borrower of a loan.
  • Adjustable-Rate Mortgage: A mortgage without a fixed interest rate. The rate fluctuates on the basis of market conditions such as index rate.
  • Annual Percentage Rate: Percentage indicating the cost of credit on a yearly basis.
  • Annual Percentage Yield: A percentage indicating the total amount of interest paid on a share account. The amount is based on the interest rate and frequency of compounding for the year.
  • Annuity: Life insurance contract sold by brokers, insurance companies and other institutions as retirement investment.
  • Automatic Bill Payment:  An automated system for an account holder to pay recurring bills.
  • Available Credit: The remaining amount of funds in a line of credit or account that a member can borrow.
  • Closing Costs: Expenses incurred by sellers and buyers when transferring the ownership of property.
  • Collateral: Assets offered by a borrower for securing a loan or some other form of credit.
  • Drawer: A person/entity who writes a check or draft asking the drawee to pay another.
  • Drawee: The credit union or financial institution expected to pay a check or draft that is presented for payment.
  • Escrow: The act of holding money or documents by a neutral third party prior to closing the property.
  • Foreclosure: Legal process of selling property and using the proceeds for covering a mortgage debt.
  • Open-End Credit: A credit agreement allowing members to borrow against pre-approved credit line for purchasing goods and services.
  • Overdraft: When the amount in an account falls short of the amount being withdrawn from a checking account or share draft account.
  • Payee: A person or organization to whom a check, draft or note is made payable.
  • Payoff: Complete repayment of a loan.
  • Share Draft Account: Checking accounts are called share draft accounts by credit unions. They are transaction accounts.
  • Uncollected Funds: A part of a deposit balance that is due to be collected by the depository financial institution.
For more information, visit Greater Central Texas Federal Credit Union at 3305 E. Elms Rd., Killeen, TX-76542 or call at (254) 690 – 2274.

Improving Your Credit Score

30. March 2019 Administrator Blog (0)
Good credit score helps in qualifying for loans, better deals on car insurance, getting credit cards at favorable terms and more. Many factors like payment history of loans and credit cards, amount of revolving credit used, balances in one’s bank accounts, frequency of applying for credit, types of accounts, etc. affect the credit score.

Following are some tips for improving credit scores:

  • Use Online Tools To Keep A Tab On Your Credit Score: The first step towards improving your credit score is to check your status. You may use free online tools as they can help you in checking your current score and also provide insights about the factors affecting credit score. This information will help in formulating a plan for credit score improvement.
  • Create A Plan: After studying your credit report thoroughly, formulate an action plan to make possible improvements. You should aim to keep your credit card balance and revolving credit low.
  • Set Up Payment Reminders And Automatic Payments: Avoid late payments by setting up due date alerts. Also, you can set up automatic payments as per the schedule of your pay check.
  • Maintain A Low Credit Utilization Ratio: Credit utilization ratio is calculated by adding all credit card balances and dividing the amount by the total credit limit. A low credit utilization ratio is indicative of a good credit score and implies that you are managing your credit well.
  • Avoid Unnecessary Credit Accounts: It is advisable to avoid opening new credit accounts as unnecessary credit may lead to overspending & accumulated debt. This may negatively affect your credit score. You should open new credit accounts in unavoidable circumstances only. Applying for new credit may harm your credit score as it results into multiple inquiries on your credit report.
  • Keep Unused Credit Cards Open: Closing credit cards increase credit utilization ratio which has a negative impact on your credit score. 
  • Create An Emergency Fund: Build an emergency fund to ensure that you meet your debt obligations on time even during dry financial periods. You may utilize this fund, if needed instead of applying for a credit.
Improving credit score requires diligent planning and dedication over time but eventually brings about many financial benefits & provides more opportunities to achieve bigger financial goals.

Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit of its member and offers an array of services. For more information, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690-2274.

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26. March 2019 Administrator Auto Loans (0)



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Smart Money Management Tips

22. March 2019 Administrator Blog (0)


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Benefits Of Taking Secured Loan

28. February 2019 Administrator Blog (0)



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Things To Consider When Opening A Checking Account

25. February 2019 Administrator Blog (0)


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