savings secured loans
Credit starts here! With a CD or savings secured loan at SunWest, we make it easy to build your credit while saving for your future.
features you can appreciate
easily build credit
low rates
variety of options
low monthly payments
secured loan features
Your credit score is just one piece of the human puzzle that is you. From credit cards to mortgages - even jobs - credit plays a significant part in your life. It can either save you money or cost you money, so it’s important to treat it wisely.
A savings secured loan is one of the best places to start whether you’re rebuilding credit from a financial stumble or just getting started on your credit journey. Use your own savings account as collateral for a secured personal loan.
make it make sense
Securing a loan with your own funds sounds complicated, but it’s actually an easy way to build credit, and it can also come in handy at other times too. Like when you’re saving with a specific goal in mind, but life happens, and you need to use those savings funds.
savings secured loan example:
You have $5,000 in your savings account that you plan to use in a year or two toward a down payment on a home, but the air conditioning in your car goes out in the middle of July.
You’ve got a few options:
Get heatstroke every time you’re making a quick trip down the road for a carton of milk. (not recommended – super dangerous)
Withdraw that chunk of cash from your down payment fund. (setting your home-buying dream back a little longer)
SunWest will place a hold in your savings account on the amount you need for that A/C and give you the money for the repair in cash or a check.
now let’s talk certificate secured loans
A certificate secured loan is essentially the same as a savings secured loan with 2 main differences.
longer terms
Certificate secured loans can be financed as far out as the certificate maturity date.
Terms range from 6 - 60 months
funds availability
Because certificate (CD) funds are locked in for your chosen term, the funds are made available at the CD maturity date vs. each time you make a payment.
don’t sweat it
Building credit can seem overwhelming, but you have to start somewhere, and you’ve got options at SunWest Credit Union. Take a look at the chart below to compare secured loan options.
savings secured
certificate
secured
credit builder
secured card
interest rate
2% + current Savings dividend rate
2% + current CD term dividend rate
2% + current CD term dividend rate
7.90% fixed rate
available terms
6 months
12 months
24 months
12 months
24 months
6 months
12 months
24 months
36 months
60 months
12 months
24 months
36 months
60 months
6 months
12 months
24 months
12 months
24 months
Revolving line of credit with no maturity date. Closed anytime upon member request.
minimum deposit
$500
$500
$0 deposit required
$500
fees
interest
interest
$25 + interest
interest
payment
Fixed monthly amount
Fixed monthly payment
Fixed monthly amount of about $85
3% of your balance with a minimum dollar amount of $20
best if...
you want funds to become available each month.
you want a lump sum available once the term ends, want a longer term, or you want to use funds from an existing CD.
you don’t have a large cash deposit.
you want to be able to use up to your deposit amount whenever you need to with the convenient access of a card.
Savings Secured
interest rate
2% + current Savings dividend rate
available terms
6 months12 months24 months
minimum deposit
$500
fees
interest
payment
Fixed monthly amount
best if...
you want funds to become available each month.
Certificate Secured
interest rate
2% + current CD term dividend rate
available terms
6 months
12 months
24 months
36 months
60 months
12 months
24 months
36 months
60 months
minimum deposit
$500
fees
interest
payment
Fixed monthly payment
best if...
you want a lump sum available once the term ends, want a longer term, or you want to use funds from an existing CD.
Credit Builder
interest rate
2% + current CD term dividend rate
available terms
6 months
12 months
24 months
12 months
24 months
minimum deposit
$0 deposit required
fees
$25 + interest
payment
Fixed monthly amount of about $85
best if...
you don’t have a large cash deposit.
Secured Credit Card
interest rate
7.90% variable rate
available terms
Revolving line of credit with no maturity date. Closed anytime upon member request.
minimum deposit
$500
fees
interest
payment
3% of your balance with a minimum dollar amount of $20
best if...
you want to be able to use up to your deposit amount whenever you need to with the convenient access of a card.
Reach out to our lending department via phone or apply online for any of our 4 secured options: savings secured loan, certificate secured loan, credit builder loan, secured MasterCard® credit card.
Savings Secured Loans FAQ
How do I calculate my secured loan interest rate?
You can calculate your interest rate by adding 2% to the current dividend rate of the account you’re using to secure the loan.
For example: (2% + .05% = 2.05%) 2.05% is your interest rate.
What is the minimum loan amount for savings secured loans?
$500. There is no maximum loan amount on savings secured loans, however, the monthly payments must fit within your budget.
When is the hold removed on the money I used
to secure the loan?
For savings secured loans, your money is made partially available with each loan payment. For a certificate secured loan, the funds will be made available at the time of certificate maturity.
Can I pay my secured loan off early?
Yes, you can always pay off your secured loan early with no additional fees.
However, keep in mind that if your goal is to build credit, paying off your secured loan early is most likely not the best course of action.
Savings secured loans increase your credit score by reporting positive payment history to the credit bureaus, and more payment history is always better.
Can I have multiple secured loans at one time?
Yep! We offer 4 types of secured loans: savings secured loans, certificate secured loans, secured MasterCard® credit card and a credit builder.
You could have 1 of each, mix and match, or have multiple of each, with the exception of our secured MasterCard® which is restricted to one per account.
APR = Annual Percentage Rate.
APY = Annual Percentage Yield.
Please keep in mind we always pull credit for any new member as part of our identity verification process.
