How does a share secured loan work?
You are simply securing the loan with your deposit account. The credit union places a pledge on your deposit account. The funds pledged are not available for transactions, but still earn dividends. As you pay down the balance of your loan account, the available balance in your deposit account increases with each principal reduction.
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What are the benefits of a Share Secured loan?
Many people don’t want to touch their savings, so this product gives them the opportunity to borrow more cost effectively while still keeping their savings intact. It also prevents the penalties that can occur with cashing in a certificate before it has reached maturity.
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What if I need to borrow money, but don’t have collateral?
Members can borrow from the credit union for any reason. Any loan that is not secured is considered a personal loan.
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What is a line of credit?
A line of credit is simply a loan with an established credit limit. The benefit to this type of loan is that the member can advance funds on this account up to the maximum credit limit as often as they like with no need to reapply. We offer five different types of products under this plan. They are Ready Credit, Prime Credit, Overdraft Protection, Share Secured, and Certificate Secured.
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How is my credit limit determined?
Our underwriting process considers such things as income levels, current liabilities, and credit history to help us determine the credit limit.
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How does it work?
After the initial application, members sign a Plan Agreement. This will allow the advance of funds in the future without completing another application. A phone call or email is all that is needed. We just update your personal information, ask for any changes to debt or income, and process the advance by either sending a check or depositing the money to your credit union Savings or Checking account. Our Ready Credit and Prime Credit lines have the added convenience of self-guided advances through I-Branch Home Banking.
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What is Overdraft Protection?
Overdraft protection is a loan tied to your UIECU checking account. To avoid returned checks. NSF fees, or Courtesy Pay charges the amount you are short will be advanced on your overdraft protection loan and deposited to your checking account.
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