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

Secured Loans Vs Unsecured Loans

25. May 2011 Administrator (0)

While procuring a loan it is important to know what kind of loan you should opt for. Basically there are two types of loans available. The first one is Secured Loan – Where certain collateral is kept as security by the lender. The second one is Unsecured Loan – Where loan is given without keeping any collateral. A person needs to make a sound choice between the two. The choice of the same would depend on various factors like:

  • Purpose for which the loan has to be taken.
  • Your financial capability
  • Loan Tenure
  • Monthly repayment capacity
  • Loan amount

What are Secured Loans?

Secured loans as the name suggests are loan that are provided by financial institutions against something that you own (asset). In case the loan is not paid, the lender can take possession of the asset to cover their losses. In case of auto loans, depending on what vehicle you are buying and the cost of the same; financial company decides what asset can be taken as collateral. It can be your property or any other asset that has similar value in comparison to the loan amount.

Advantages of Secured Loans

  • Lower interest rates.
  • Depending on the value of the asset, you can borrow more loan as compared to unsecured loans.
  • As your secured asset assures lender that their money is safe, you can get a loan even if you have a bad credit history.
  • Longer repayment periods.

What are Unsecured Loans?

As the name suggests unsecured loans are the loans given by financial companies and lenders without keeping anything as collateral against the loan amount. As the loan is given without any security, the risk for lender is high. As a result most of the unsecured loans attract high rate of interests and the repayment period is also usually short. The rate of interest is also decided on the basis of your credit history and your repayment capacity.

Advantages of Unsecured Loans

  • You don’t need a property or any other expensive assets to take an unsecured loan.
  • For small purchases, unsecured loans are cheaper than credit cards etc. In case you need small loan for few months, then you should go for unsecured loans to fund your purchase.

To obtain cheap and 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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GCTFCU Blog | Financial Management Tips
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Financial Management Tips

26. September 2022 Administrator Blog (0)
Financial management is the process of planning, budgeting, saving, investing & spending your money to meet long-term and short-term financial goals. With a good financial management plan in place, you will be able to make well-informed financial decisions while giving yourself a safety net for times of emergency. Here are some reasons that emphasize on the importance of financial management:

  • Allows to establish clear financial goals.
  • Fulfils daily financial needs.
  • Helps in managing your income. (Budgeting, Savings & Expenditure)
  • Gives a healthy financial future.
  • Keeps you prepared for sudden & big expenses.
  • Improved standard of living.
  • Helps to optimize the worth of your income.
  • Financial Independence.
Here are some proven money management tips:

Determine Your Financial Priorities

Assess your financial needs & priorities to streamline the process. Create short-term & long-term goals and build an effective financial plan to achieve them.

Create a Budget

Create a budget that aligns with your financial priorities, income, daily expenditures, recurring expenses, taxes, wants, needs, savings & debt repayments. You can also choose a budgeting framework to set financial boundaries.

Example: Use the 50/30/20 budget rule. Spend 50% of your income on needs & daily requirements. Dedicate 30% of your income on wants like shopping, dining out, travel, entertainment and other luxuries. Minimum 20% of your income should be added to savings, emergency funds & debt repayments.

There are multiple budgeting plans, choose one that suits your income and priorities.

Track Your Money

Making yourself aware of the financial situation helps to keep things organized and transparent. Make a checklist or use financial apps or calendar to monitor the movement of your money. With changing income, expenses and priorities revisit the budget plan time and again to keep track of it.

Savings & Investment

Explore various savings and investment options to grow your money over time. Study interest rates and other outcomes of the plan before investing your money. Consider opening a savings account in a credit union to seek higher dividends. You can also avail automated savings & investment options. Diversifying your investments usually generates positive results.

Create An Emergency Fund

Save a specific amount of money as an emergency fund. The emergency fund provides a safe cushion in situations like medical emergencies, financial distress, etc. 

Insured by the National Credit Union Share Insurance Fund (NCUSIF), Greater Central Texas Federal Credit Union offers multifarious automated services, savings, investment & lending options. For more financial management tips, visit Greater Central Texas Federal Credit Union at 3305 E Elms Rd, Killeen, TX - 76542 or browse through www.gctfcu.net
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