If you have savings with MSDFCU that you do not want to spend, but need a loan, then consider a Savings-Secured Loan. You’ll receive a lower rate as the savings are pledged as collateral for the loan. As you pay off your loan, the corresponding amount of savings is available to you. The advantage of this loan is two-fold; you keep your savings intact and receive a lower rate than most other types of loans. It’s also a great way to build your credit. CDs, regular savings, etc., can all be used to secure the loan. You may have multiple Savings-Secured Loans with us and the only limit is the amount of savings you have available to pledge.
Another option is the Collateral-Secured Loan. An item of value is pledged as collateral for the loan. As long as you pay your loan, the collateral remains your possession. However, should you default on the loan, the Credit Union would have the right to sell the collateral to pay off the loan. This type of loan also offers a lower rate than unsecured loans, but you should be aware of the consequences should you not be able to afford the loan. The Credit Union accepts auto titles which are free and clear, and are for vehicles seven years old or newer, as collateral.
Apply today or contact us for additional information.