Share Secured Loans? What’s That?
Among all of the other excellent loan opportunities that we offer our members, we present to you our Share Secured Loans. With these types of loans, 705 FCU enables you to borrow against your shares to continue earning dividends while securing the funds that you need! Read more about these different types of share secured loans below.
There are two options when borrowing against your shares (savings).
- With a Regular Share Secured loan you are able to borrow the full amount of your Regular Share balance. Your full account balance continues to earn dividends at the current rate for Regular Shares, while you pay only 2% above the current rate being paid on savings for the portion you borrow. The current loan balance is frozen until the loan is paid in full; however the pledged portion of the account is reduced with each payment made on the loan.
- We also offer a 0% Share Secured loan. 705 FCU will open a special share (savings) account that pays no dividends on the funds pledged for this loan. You in turn will pay no interest on the loan. Once the loan is repaid in full, the funds in the special no interest savings account will be transferred back into the interest bearing account. The original amount of the loan will be frozen and unavailable until the loan is paid in full.
If you’d like more information on these Share Secured Loans, feel free to contact us and speak to one of our experienced and caring loan officers. Call 337-232-8450 option 3 to make an appointment for more information today.
Need a Line of Credit? We Got You Covered!
Here at 705 FCU, we offer an open-end line of credit with lines up to $5,000 for times of need. A line of credit is a pre-approved loan between the borrower and the credit union. This way, you get the money you need when you need it and you have the comfort of knowing you have additional funds available waiting for future needs.
Consider using 705′ FCUs line of credit as an overdraft protection backup plan for your checking account! There are three safety net products that can be a plan B if your checking account goes into the red. Check out overdraft privilege, overdraft from savings, and overdraft from a line of credit. For frequently asked questions about our safety net options for checking just click.
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Is a Closed End Personal Loan Right for You?
In addition, for those of you who prefer a set payment with an ending date, we have closed-end personal loans up to $15,000.00. You may also borrow against your 705 FCU savings account (regular shares only).
Closed End V. Open End
- Closed End Personal Loan: An example of a closed end personal loan is a debt consolidation loan. This loan has a set term, amount, and interest rate agreed upon closing of the loan.
- Open End Personal Loan: An example of this loan is a credit card or line of credit. With either of these products, the option is a little more fluid. The rate remains consistent, but the amount of the payment changes based on what you owe the credit union.
Establish Credit with a Beginner Loan!
Here at 705 FCU, we understand that loans and finances can be confusing to a first time borrower. This is why we offer our unique beginner loans to make establishing credit and financial power simple.
- Our beginner loans start at $250 with affordable terms up to 6 months. You may have up to four (4) beginner loans in order to establish a sound credit history, one beginner loan at a time. After paying off your first beginner loan, we will increase your finance ability to $1,000. This will allow you the option to repay debt while at the same time establish a good credit history.
- We encourage the first time borrower to try the beginner loan or the beginner visa in order to learn the ropes. Interested in a beginner loan? Apply online or contact us to learn more! Our loan staff looks forward to helping you grow into a respected borrower.
Relevant Links:
Apply online.
Financial Calculators
Rates
Want financial tips? “Like” us on Facebook!
Ask a loan officer
