Collateral Loans

Maximizing your wealth requires understanding your financial goals and building strategies to work toward them. Loans available include two options – secured and unsecured.

A collateral, or secured loan, is guaranteed by something you own. If you fail to repay the loan, you agree to surrender the property securing the loan — like a car, savings account, or other asset. An unsecured personal loan doesn’t require any collateral.

Collateral can be anything you own, but the item’s value must be sufficient to cover the debt if you default. Securing a loan with collateral gives you more borrowing power and a lower interest rate — even if you have less-than-perfect credit.

A collateral loan is an excellent option for purchasing:

Boats
Motorcycles
Recreational vehicles or ATVs
Horse trailers
Tractors
Utility trailers

Collateral Loan Rates as low as:

6.95% APR

Calculate Your Collateral Loan payment.

Loan Amount:

Loan Rate:

Loan Term:

A collateral loan can be an effective way to borrow money. When you take out a collateral loan at Focus Federal Credit Union, the loan’s benefits make it a helpful tool to meet your goals.

With a collateral loan, you can take advantage of:

Better Rates and Terms. Collateral loans offer better interest rates and loan terms than unsecured loans.
Larger Loan Amounts. You may qualify to borrow more based on the value of the asset you use as collateral.
Credit Building Benefits. Collateral loans are an option if you’re establishing credit for the first time, have a short credit history, or your credit needs work.

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If a collateral loan is the right option for you, it’s time to get organized. You will need to provide various documentation to obtain the loan.

Documents you need for a collateral loan are:

Identification. Personal details, including name, birth date, Social Security Number, and driver’s license or other government-issued identification.
Proof of Income and Debt. W-2 forms, pay stubs, recent tax returns, and bank statements. List of existing debt payments, monthly rent or mortgage payments, child support, alimony payments, or other monthly obligations.
Address Documentation. Utility or other bills dated within the past three months.
Your Collateral. Determine which assets you have available to secure your loan and verify value.

Is there another option for a collateral loan near me?

An alternative to a collateral loan is an unsecured loan. These loans require a higher credit score and generally come in smaller amounts with higher interest rates. Focus Federal Credit Union offers a variety of loans to best fit your needs.

Do I need a good credit score to get a collateral loan?

Your credit, income, and other debts are central to any loan approval. A collateral loan could give you more borrowing options if you have limited or no credit history or are rebuilding your credit.

What is the annual percentage rate for collateral loans near me?

Annual percentage rate or APR is the rate charged for a loan. It is expressed as a percentage. APR includes any fees or additional charges with the loan. APR for collateral loans change and are lower than those on an unsecured loan. Focus Federal Credit Union is happy to give you up-to-date rates if you contact a loan officer.

How do I repay my loan?

Focus Federal Credit Union will provide your loan amount, which is due monthly. If you’re financially able, you can reduce your loan’s cost by making more payments than scheduled.

What happens if I miss a loan payment?

Your account is considered delinquent when your payment is at least 30 days past due. If you default, your collateral could be repossessed to pay your debt.

How risky are collateral loans?

The most significant drawback of collateral loans is the risk of losing your collateral. If you fail to make payments, your assets can be seized and sold. Profits from the sale will be applied to the unpaid portion of the loan. Legal action can be pursued for any balance remaining.

Collateral Loans: Your Solution for Short-Term Financial Needs