Putting cash into piggy bank

Share Secured Loan: Keep Your Cash and Build Credit

Good credit is an important component of financial health. But obtaining good credit is a bit like the chicken and the egg – in order to qualify for a credit card or loan, you need to have already established good credit. So how do you build credit if you can’t yet qualify for a loan? A share secured loan can help.

Borrow from yourself

A share secured loan lets you borrow money using your savings account balance as collateral. The financial institution “freezes” the amount you’d like to borrow. While that amount won’t be available for withdrawal, it will remain in your account and continue to earn dividends. Plus, since the funds are already on deposit, the financial institution doesn’t need to check your credit qualifications before approving the loan.

At 1st United, you can borrow 100% of the balance in your savings account (up to $80,000) and as you repay the loan, your funds become available for your use or to withdrawal.

Good payment history builds credit

So, why not just use that cash to buy what you need? Paying in cash doesn’t build credit. But with a loan, when you make a monthly payment, it is reported to the credit bureaus. Paying on time and in full every month helps to build good credit. Of course, there are other factors that go into building credit, but on-time payments is an essential element.

Plus, with a share secured loan, your payments are fixed. That means the same amount is due at the same time each month. Using automatic payments can make for easier budgeting.

Get started

Share secured loan options are often overlooked, but can be a valuable way to access cash, payoff higher-rate debt, and build credit. Take a moment to learn more about our share secured loan and view current rates. You can also use our handy calculator to estimate your monthly payment. When you’re ready, apply online. If you have questions about share secured loans or building credit, contact us. We’re here to help.

APR (Annual Percentage Rate) as of April 1, 2024, and is subject to change. Loan subject to Credit Union approval. Minimum loan amount $500, maximum loan amount $80,000. The hold on your savings balance will reduce monthly by the principal payment amount. Terms and conditions apply. Loan payment example: $11.74 per month for each $1,000 borrowed at 3.03% APR for 96 months.

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Apply today if you live, work, or attend school in Alameda, Contra Costa, San Joaquin, Solano, Stanislaus, or Kings Counties.