We have spent a lot of time telling you how many benefits you can reap by switching your finances from a corporate bank to a credit union. Here’s another reason for you. Share secured loans are guaranteed loans that offer protection through shareholder’s savings accounts.
These are only found in credit unions because at corporate banks, everyone is on their own. At credit unions, a community is established among the members. Valley Federal Credit Union in Harlingen and Brownsville offer share secured loans.
Benefits and Process
Credit unions authorize loans by election when a member has a reliable credit score. Sometimes, when a member applies for a loan and his or her credit report is subpar, the credit union may move to authorize a share secured loan. This requires that the member’s savings account will have a hold throughout the duration of this loan.
There are options to paying off this loan. A popular recourse is to pay it off through a payroll-deduction. The credit union will deduct a reasonable amount every time a deposit is made from your employer into your account. This makes it more convenient for the members, because going to pay the loan in person is not required and your time is saved. An automatic deduction from your account also ensures that no late payments are made.
Another benefit of a share secured loan is that the interest is not nearly as high as it is when borrowing from a bank. Your interest return is also higher, so you earn back more than you would from a bank loan.
For more information on the benefits of share secured loans, contact the Valley Federal Credit Union by visiting us at any of our valley locations, or by calling our main office in Brownsville at 956-546-3108.