How to Use Assets as Collateral for Loans
 
Find A LocationLocations
Make A PaymentPayments
Search Our Site  &   Popular PagesSearch
Still Need Help?More
>   >
>   >
>   >
>   >
Enter your search term here:
POPULAR PAGES
Call Us
512-836-5901
800-237-5087
Email Us
Click Here
Mail Us
Amplify FCU
PO Box 85300
Austin, TX 78708
Live Chat
Click Here
 
Search Looking For Help? APPLY LOGIN
APPLY LOGIN
LOGIN
Enter your login ID:
Password:
APPLY
 
Research and articles related to personal finance

Financial Advice

MONEY MANAGEMENT

Articles and research about personal finance

Research and articles related to personal finance

Financial Advice

MONEY MANAGEMENT

Articles and research about personal finance

How to Use Assets as Collateral for Loans

Published July 17, 2013 | Updated July 22, 2013

Collateral loans, also known as secured loans, make it possible for many people who have less-than-perfect credit to get good rates on loans. Since collateral loans are secured by property or assets that the borrower owns, taking out a collateral loan means that the borrower must promise to hand over the asset if he does not abide by the loan’s terms.

Cash Secured Loan

If you have limited credit history or are recovering from a financial downturn, your credit union can help you secure a good loan rate based on your available funds. For example, if you currently have cash in a checking or savings account, you may qualify for a share secured or share certificate loan. A share secured loan is an ideal option for those who want to build their credit by making regular payments and use their available cash as collateral.

Collateral Secured Loan

A collateral secured loan involves using the purchase itself as collateral. For example, if you need a home or auto loan, you can use the home or vehicle as collateral in case of default. A collateral secured loan is based upon the borrower’s creditworthiness. Because collateral provides the lender with some security in case of default, collateral loans generally have lower interest rates than unsecured loans.

Careers  |   Forms & Disclosures  |   FAQ  |   Privacy & Security  |   NMLS# 530487  |   Routing Number: 314977227
VISIT US: Like us on Facebook Connect with us on Google+ Follow us on Twitter Connect with us on LinkedIn Watch us on YouTube