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

Reasons To Choose A Secured Loan In Killeen

18. October 2016 Administrator Auto Loans (0)
When applying for a loan at credit union, you will come across two options - secured and unsecured loans. It is important to know about both these types of loans to make sure you make the right decision. Make sure you analyze your requirements such as income, debt, credit history and budget before choosing a loan plan at your credit union. Research thoroughly about various lenders so that you can get a loan at low interest rates.
 
What's The Difference Between A Secured And Unsecured Loan?

Secured Loans

These are backed by a collateral such as a car, property, stocks or any other valuable asset.  If the borrower fails to repay the loan, the lender may take possession of the collateral. Secured loans can be a perfect option for those who require to borrow a large sum of money to meet their long term financial goals.

Unsecured Loans

An unsecured loan does not involve the use of collateral.  As compared to secured loans, it generally has a shorter repayment term and a higher rate of interest. These types of loans are approved on the basis of income, credit history and various other factors.

Benefits Of Secured Loans:

Low Interest Rate: A secured loan is offered at low interest rate as the collateral serves as a ‘security’. If the loan is not paid on time, the value of the collateral is used to repay the amount. On the other hand, unsecured loans have a higher rate of interest as the lender lacks assurance of loan repayment. Secured loan can be a good choice if you are looking for easy financing options.

Longer Repayment Term: In case of secured loan, you get a longer time to repay the amount which can lower your monthly premiums and ensure financial stability. It also relieves the pressure of paying a higher amount of money. Such types of loans involve a highly valuable asset as a collateral. Thus, credit unions provide longer time for repayment. On the contrary, an unsecured loan has a shorter repayment term.   

Higher Borrowing Limits: If you are looking to borrow larger amount for any major investment, you must opt for secured loans. The borrowing limits are usually proportional to the value of the collateral. For instance, you can choose a secured loan if you need to buy a home or a car. While in case of an unsecured loan, only a small amount of money can be borrowed as there is a risk of non-payment.   

Easy To Apply: You can easily get a secured loan regardless of your credit history and employment status. Credit unions do not impose any strict rules for loan approval or check for any late payments. This also reduces the paperwork involved in the process. In case of an unsecured loan, having a good credit score is important to get qualified.

Greater Flexibility: A secured loan offers greater flexibility as compared to unsecured loans. It can help you to easily convert a fixed-rate loan to a variable-rate loan. You can also vary the premium amount according to your convenience.  You will have to pay a fixed interest rate for the unsecured loans as they have no security.  

Considering their various benefits, you can choose a suitable loan plan accordingly. It is important to read the terms and conditions carefully to avoid any hassles later.

We, at Greater Central Texas Federal Credit Union provide quick and affordable secured loans to our members in Killeen. The staff at our credit union helps to choose a loan plan according to your requirements. We also offer direct deposit, payroll deduction and other online services to provide you a better lending experience. For more information, you can call us at (254) 690 – 2274 or visit our credit union at 3305 E. Elms Rd., Killeen, TX  76542. You can also apply for a secured loan at our website.
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GCTFCU Blog | Reasons To Borrow Secured Loan
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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