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Saving-Secured Loan

The Easy Way to Establish or Rebuild Your Credit

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.

Today's Loan Rates1

Savings-Secured Loans 2% over deposit rates
Savings Rate 0.05% / 0.05% APY 2
Auto 1.49%  - 15.49% APR 3
Personal Loans 8.99%  - 20.99% APR
View all SMCU loan rates

How It Works

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.

Rebuild Your Credit and Purchasing Power with an SMCU Savings-Secured VISA®

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.

Good Payment History Builds Credit

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.

Savings-Secured Rates Are Much Lower than Other Loan Rates

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.

It’s Fast and Easy to Apply

You can apply for a Savings-Secured Loan online at It only takes a few minutes to complete the application and you’re on your way. You can also apply at a branch or you can call a loan representative at (800) 334-2489.

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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.

1Annual Percentage Rate. APR reflects any prepaid finance charges and is subject to change without notice. Rates and financing are offered based on applicant's credit qualifications and other underwriting criteria.

2APY = Annual Percentage Yield. Rates can change without notice. Rates on savings, money markets, and checking accounts may change after account opening. Account fees may reduce earning on the account. Call our Contact Center at (206) 398-5500 or (800) 334-2489 for the most current rates.

3 Example based on qualifying loans up to 80% LTV. Rate shown is for purchases or refinances only. Rates effective 2/1/2014 .

CU SERVICE Equal Housing Opportunity Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government by the National Credit Union Administration, a U.S. Government Agency. BBB
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