Yesterday, 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).
Back in January, we 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).
In honor of our 120th anniversary, Popular Community Bank is offering a special 11-month CD rate right now. Click here, or stop by a branch for details.
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.