In January, we talked about why your credit history matters. We outlined five factors that are considered when a creditor is evaluating you as a candidate: character, capital, capacity, collateral and credit (history).
We also discussed the benefits of a certificate of deposit (CD). One benefit we did not discuss at that time is your ability to use your savings account or a CD as collateral for a short-term loan.
Did you know money you have saved could help you build (or rebuild) your credit? Here’s how!
For a Popular Community Bank Secured Personal Loan, you have the option to use your Popular CD or Savings Account as collateral against the loan. Generally, a CD used as collateral will have a term that matches the life of the loan; a loan with a 12-month repayment period would require a 12-month CD.
One of the great benefits to a savings or CD secured loan is that the funds can be used however the borrower wishes to use them; if you need funds for unexpected expenses, debt consolidation, or any other reason.
This can help you build (or rebuild) a positive credit history, making you a stronger candidate for future lending needs like an auto loan or mortgage. Also, you can continue to earn a great rate on those funds, and get the loan you need today.
At Popular Community Bank, interest earned on a CD is compounded daily, and can be credited to your account monthly, quarterly, semi-annually, annually, or at maturity. The term of your CD can be anywhere between 30 days and 10 years (120 months).
For more great information about our personal loans, click here.
For more information about our savings options, click here.
And to find a branch near you to take advantage of these great opportunities, click here.