If you have had past credit troubles or have yet to establish any credit, you may have a hard time getting a loan. Creating a positive credit history is important because your credit rating can impact your life in ways you may not realize, such as making it harder to rent an apartment or apply for a job. Fortunately, Seattle Metropolitan Credit Union has a great tool to help you build your credit history: the Savings-Secured Loan.
An SMCU Savings-Secured Loan uses funds deposited into an SMCU Savings account, Money Market, or Certificate account as collateral for a loan equal to the deposited amount. The deposited funds stay frozen until the loan is paid in full. Once the loan is open, you make payments to it, as you would any other loan.
As you make on-time payments to your Savings-Secured Loan, you are building up a positive payment history with SMCU. We report that history to each of the three major credit bureaus. The more on-time payments you make, the more it helps your credit score.
Getting your loan at SMCU could not be more simple. There are three easy ways to apply:
Call our specially-trained loan experts, who are happy to answer any questions you might have. They can take your application and get you a decision while you wait, in most cases. Call 855-575-9352 to get started.
Stop by any of our convenient branches to talk with our helpful, friendly branch representatives. They can help you figure out which loan is right for you and get you a decision fast.
What is the maximum term for a Savings-Secured Loan?
The maximum loan term is 60 months and depends on the initial loan amount.
Is there a maximum amount for Savings-Secured Loans?
The maximum loan amount for Savings-Secured Loans or VISAs is determined by the amount on deposit securing the loan, subject to SMCU policies for aggregate loan amounts that a member may have outstanding with SMCU.
Can a minor have a Savings-Secured Loan or Savings-Secured VISA?
Borrowers must be at least 18 for all types of loans. However, minors 16 years or older may be eligible for a Savings-Secured VISA as part of SMCU's Student Checking program.
Credit cards are a big part of our buying habits today. If you have poor credit or no credit, they can be hard to get. Even if you do qualify for a credit card, the rates and fees are likely to be extremely high.
An SMCU Savings-Secured VISA can help you build or repair your credit and reclaim your purchasing power while enjoying low SMCU rates and no annual fee. The credit limit on your card is equal to the amount you have on deposit to secure the card. For example, if you have $500 in the savings account securing the cards, your credit limit will be $500.
Once you’ve had time to establish a good payment history with your Savings-Secured VISA, you may qualify for a regular SMCU VISA.
SMCU Savings-Secured Loans are substantially less expensive than other loans, only 2% higher than the rate of the funds on deposit. For example, if your loan is secured by a savings account earning 0.05%, your loan rate would be only 2.05%. If you deposit into a Certificate earning 0.90%, your rate would be just 2.90%.
SMCU’s Savings-Secured Loans make it easy to start on the road to credit recovery, and our low rates make it easy on your wallet.