Sharon Credit Union Go to main content

Perspectives, Financial and Otherwise,
from Sharon Credit Union

Facebook Twitter Google+ Print Email

FAQs About Share Secured Loans

on 1/29/2018

FAQs About Share Secured Loans

Wondering about share secured loans? Here’s all you need to know about this unique product that can provide a low-interest rate plus credit building and repair:

1.) What are share secured loans?

Share secured loans allow you to borrow against your own savings, using it as collateral. Instead of liquidating your account to make a purchase, thus losing out on all dividends and an emergency safety net, you borrow against that sum while your money stays in the account.


2.) How does it work?

Your credit union will place a hold on the amount you want to borrow against. When you apply for the loan, you’ll be granted the amount you requested in the form of a check or a deposit into your share account. You can make payments on the loan through an automatic withdrawal from your account, via direct deposit or by sending in a monthly check.

3.) Who would benefit from a share secured loan?

Borrowers with damaged or no credit, who may not otherwise qualify for a loan, stand to gain the most from these loans. Since there is no risk to the lender, most credit unions grant instant approval of a share secured loan without requesting a credit report.

4.) When will the funds I am using as collateral be available for me to use again?

The availability of these funds varies by credit union. Some credit unions will release these funds in predetermined amounts as you make your monthly payments on the loan. Others will not allow you to access the frozen portion of your savings account until you’ve paid up the entire loan. When you take out a share secured loan from Sharon Credit Union, our policy is to grant you access to your frozen funds when the loan has been paid off in full.

5.) What are some advantages of a share secured loan?

  • Inexpensive. Interest rates on share secured loans are often only 1 to 3% above the dividend rate on your savings account.
  • Convenient. You can usually get on-the-spot approval for a share secured loan. Once you’ve been approved, you can use the money in any way you’d like.
  • Improve your credit score. While the actual loan won’t improve your credit rating much, you can use the money you’ve borrowed to pay off outstanding loans and increase your credit score.
  • Low requirements. There is generally no credit check when applying for a share secured loan.

6.) What are the disadvantages of a share secured loan?

  • Increased risk to the borrower. When your own money is used as collateral, it’s your money at risk of being lost.
  • Less credit reward. Since they pose no risk to the lender and usually don’t require a credit report, your loan will not affect your credit score much.
  • Interest fees. If you are choosing between liquidating a savings account and borrowing against it, it may be cheaper to empty your account as it won’t cost you anything.

Your Turn: Have you ever taken out a share secured loan? Share your experience with us in the comments!

« Return to "Blog Home"
7/10/2019 7:48 PM scott c. from texas, CA
Hello, I want to thank Mr BARRETT for giving me a loan. After being deceived by many fake lenders, I found a good testimony of the BARRETT LOAN COMPANY online, and I was granted a loan by Mr. BARRETT. If you need an urgent loan of any value today, contact him with email:barrettloancompany@gmail,com
whatsapp: +2349067733994
or via site
Affordable and reliable loan
1/23/2019 11:32 AM polly d. from london, CO

I am Mr Polly with a great testimony how i receive my loan from this great company i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to them, i was in need of a loan the sum of $470,000.00 Dollars to pay off my debt and startup a business, So happy today i receive my loan and if you are in need of loan and you will pay back the loan please contact and tell them that is Mr polly that refer you to them.

Contact Mr Justice
1/6/2019 6:24 PM mr m. from austin, AL
Do You Need a loan…..?

if yes Contact Michael today via ( Financial assistance at a low rate of 3%. say goodbye to all your financial crisis and difficulties !
Ford Credit Centre offers business loans to help you grow your business. We are certified, trustworthy,reliable, efficient, Fast and dynamic.
10/2/2018 9:54 PM Richard.D F. from MI, FL
Ford Credit Centre offers business loans to help you grow your business. We

are certified, trustworthy,reliable, efficient, Fast and dynamic.

We give out all kind of loan like Educational loan, Business loan, home loan,

Agricultural loan, Personal loan, auto loan and other good Reason, I also give

out loans from the rang of $10,000USD- $30,000,000USD at a 3% interest rate.

Duration of 1-30 years depending on the amount you need as loan.

Get back to us for more information on how to get a loan from us successfully.

Richard.D Ford
WhatsApp:+1 404 400 4210
Secured Loan
9/27/2018 1:39 AM an anonymous user.
Thanks for sharing such great Article. You really shared such a useful Information with us which helped me a lot and I have bookmarked your page so that i can get to learn new things each time you share any great Information to us. Keep up the Good Work!! Thanks. If you need 5000 dollars now with bad credit. Instant credit loans us provide these personal loans.Apply now easily at online and get an instant approval.
Post Comment
First Name:
Last Name:
(Only last initial will display on comment)
Check this box if you do not want your name and location to be displayed
E-mail Address:
(Not displayed on Comment)

Notify me by email if this comment receives a response
Security Code:
What's this?