Build Your Credit

Perfect for building a credit track record, secured personal loans1 use your savings account or Certificate of Deposit as collateral. While you borrow against these accounts, the funds are frozen. But when you pay the loan back, the funds are available again. And your savings earn money the whole time!

Types of Secured Loans

Savings Secured Loans

When you don’t want to spend what’s in your savings account but need money, you can use your savings account for a secured loan. This is great for people who need to build or rebuild their credit. Your savings account continues to earn money while you build a record of consistent payments. The current interest rate for Savings Secured Loans is 4.25% APR.

CD Secured Loans

Certificates of Deposit are like savings accounts, but you can't access the funds until a certain date. However, you can borrow against the amount with a secured loan. While the CD is acting as collateral, it will still earn higher interest rates than with a savings account. But you’ll also be building credit through repayment of the loan. The interest rate on CD Secured Loans is 3.00 points above the CD earnings rate.

Build Your Credit With CUTX

Kick off your credit-building journey today by enrolling in CUTX's Credit Building Email Series. You'll learn everything you need to build your credit from the ground up or repair damaged credit. You'll also learn how best to monitor your reports from the credit bureaus.

FAQ - Secured Loans

  1. If you are a member of CUTX: Log in to online banking and make a payment with a funds transfer.
  2. If not a member: Use your financial institution to pay via Billpay
  3. Pay over phone: Call 972-263-9497, choose option 4 for Member Services ($15 Service Fee is applied to phone payments)
  4. Make a payment through Speedpay
  5. Make an automated payment through Telephone Teller:  Call 972-263-9497, choose option 1

First you'll want to determine how much money you want to secure in the loan. You'll also need to decide how long you want to repay the loan. To increase the chances of a positive impact on your credit score, CUTX recommends terms of at least 12 months.

Secondly, decide which type of secured loan you want to do. You can save time by opening the account and depositing your funds into it. Make notes of the account information so you can reference it when you apply for the loan.

Lastly, apply for the loan online and fill in all of the necessary details for the application. Once your loan funds, you will get all of your due dates and details so you can start making repayment arrangements.

Lenders charge higher interest rates when the loan they extend presents a greater risk. With secured personal loans, lenders know the money is secure in their financial institution. If something should happen and you default on the loan, your lender has the funds available to cover the loan.

Typically, people who don’t need to access their money right away might choose a CD because the interest rates you receive from a CD are higher than with a savings account. If it is important to have that savings money more available, you might prefer a savings account.

Apply online, just as you would with any loan. The requirements are less strict for secured personal loans than for unsecured personal loans.

Generally, the answer is yes, because the money is secured with your own money in the same institution that the loan came from. So the loan is less risky than other loans and doesn't charge as high of an interest rate.

1. Loan approval and rates are subject to credit approval.