What is a share-secured loan, and how does it work?

If building credit is your goal when seeking a share-secured loan, consider taking out a small amount that is easier to pay off quickly.  If getting a personal loan at a lower rate, is you goal, then a share-secured loan might be what you are looking for.

A share-secured loan is a personal loan that is secured using the balance in your savings as collateral. This type of loan generally has lower interest rates than other personal loans because it is secured.

Share-secured loans are a good option for those with poor or no credit scores. These loans can be a great way to build your credit score because they are easier to qualify for than other loans and they typically have low interest rates.

• No fee: There are no origination fees, and you won’t be penalized if you decide to pay the loan off early.
• Inexpensive: The interest rate associated with share-secured loans is quite low than an unsecured signature loan, making them an inexpensive way to borrow.
• Continue to earn interest and dividends: The funds in the savings account that you’re borrowing against continues to earn dividends.
• Easy to obtain: Because you’re borrowing against your own funds, there is no credit check required.
• Build or repair your credit: These loans can help you establish a track-record of making on-time payments. Your payments history is reported to credit bureaus.

Apply Now