What is a CD Secured Loan?
A CD Secured Loan is a type of loan that uses a Certificate of Deposit (CD) as collateral. This allows borrowers to access funds while keeping their CD intact and continuing to earn interest. Since the CD secures the loan, it often comes with lower...
Continue ReadingHow does a CD Secured Loan work?
When you take out a CD Secured Loan from People Driven Credit Union, your Certificate of Deposit (CD) is held as collateral. You borrow an amount that’s usually equal to or less than the value of the CD. You continue to earn interest on the CD during...
Continue ReadingWhat are the benefits of a CD Secured Loan?
The benefits of a CD Secured Loan include Lower Interest Rates: Because the loan is secured by your CD, the interest rates are typically lower than those of unsecured loans. Credit Building: A CD Secured Loan can help you build or improve your...
Continue ReadingWhat can I use a CD Secured Loan for?
A CD Secured Loan can be used for a variety of purposes, such as covering unexpected expenses, making large purchases, or consolidating debt. Since it’s a personal loan, you have the flexibility to use the funds as...
Continue ReadingHow much can I borrow with a CD Secured Loan?
The loan amount is typically based on the value of your CD. You can usually borrow up to 100% of the CD’s...
Continue ReadingWill my CD continue to earn interest while it’s securing the loan?
Yes, your CD continues to earn interest while it’s used as collateral for the loan. This means you benefit from both the loan funds and the interest accumulation on your...
Continue ReadingWhat happens if I default on a CD Secured Loan?
If you are unable to repay the loan, the lender may seize the funds in your CD to cover the outstanding loan balance. Defaulting on the loan can also negatively impact your credit score. People Driven Credit Union has teamed up with GreenPath...
Continue ReadingWhat is the interest rate on a CD Secured Loan?
Interest rates on CD Secured Loans are generally lower than those of unsecured loans because the loan is backed by collateral. However, the rate may vary depending on the lender, the secured CD's Annual Percentage Yield (APY), and the loan...
Continue ReadingDoes a CD Secured Loan help build credit?
A CD Secured Loan can help you build or improve your credit score if you make on-time payments. People Driven Credit Union will typically report your payment history to the credit bureaus, which can positively impact your...
Continue ReadingCan I pay off a CD Secured Loan early?
Yes, People Driven Credit Union allows early repayment of CD Secured Loans without penalties. Paying off the loan early can help you save on interest costs and regain full access to your...
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