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 Credit Union has a great tool to help you build your credit history: the Savings-Secured Loan.
A Seattle Credit Union Savings-Secured Loan uses funds deposited into a 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 Seattle Credit Union. 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.