Borrow Against Your Savings Without Spending It.
Need access to cash but don't want to withdraw your savings or certificate? A Share Secured Loan from Circle Federal Credit Union allows you to borrow against funds you already have on deposit while continuing to work toward your financial goals.
Whether you're consolidating debt, paying for education, covering unexpected expenses, or building your credit history, a Share Secured Loan can provide affordable financing while allowing you to keep your savings intact.
What is a Secured Loan?
A Share Secured Loan is a personal loan that uses money in your Circle FCU savings account (share account) or share certificate (CD) as collateral.
Instead of withdrawing your savings, those funds remain on deposit while serving as security for the loan. You receive the loan proceeds to use for eligible expenses and repay the loan through fixed monthly payments.
Because your savings secure the loan, Share Secured Loans often offer competitive interest rates and may be easier to qualify for than unsecured personal loans.
How It Works
The process is simple:
- Use funds in your Circle FCU savings account or share certificate as collateral.
- Receive a loan for up to the value of your pledged savings or certificate.
- Continue making regular monthly loan payments.
- Once the loan is repaid, the hold on your pledged funds is released.
Your savings remain yours throughout the life of the loan—they simply serve as collateral until the loan has been paid in full.
Flexible Uses
Loan proceeds can often be used for a variety of personal financial needs, including:
- Debt consolidation
- Home improvements
- Tuition and educational expenses
- Emergency expenses
- Major purchases
- Vacation expenses
- Medical bills
Circle FCU loan officers can help determine whether a Share Secured Loan is the right financing option for your situation.
Eligibility Requirements
To qualify for a Share Secured Loan, applicants generally must:
- Be eligible for Circle Federal Credit Union membership
- Have sufficient funds in a Circle FCU savings account or share certificate to secure the loan
- Meet any applicable underwriting and documentation requirements
Circle FCU also offers Share Secured Loans to members as young as 12 years old when applying with a qualified co-borrower who is of legal age, making the program an excellent option for helping younger members begin building credit responsibly.
Why Not Just Withdraw Your Savings?
While using your savings directly may seem like the simplest option, a Share Secured Loan can provide several advantages.
Instead of spending your savings, you:
- Keep your savings intact as collateral.
- Continue working toward your long-term savings goals.
- Build positive credit history through regular loan payments.
- Preserve funds for future financial needs after the loan is repaid.
For members focused on establishing or improving credit, this can make a Share Secured Loan a valuable financial tool.
