Collateral Loans

Your Solution for Short-Term Financial Needs

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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. 

Collateral Loan Rates as low as:

6.95%

APR

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A collateral loan is an excellent option for purchasing:

Faster Approval

Lower Interest Rates

Build Your Credit

Benefits of Collateral Loans with Focus Federal Credit Union

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:

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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.

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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.

Essential Requirements for Securing a Collateral Loan

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.

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RV/Travel Trailer Loan

as low as

6.95% – 18% APR

Motorcycle Loan

as low as

6.95% – 18% APR

Boat Loan

as low as

6.95% – 18% APR

Interest rates (APR = Annual Percentage Rate) determined by credit score. Normal credit union underwriting, terms and conditions apply. Rates subject to change.

Rate effective as of September 1, 2026

See All Rates

Collateral Loan FAQs

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.

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. 

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.

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.

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. 

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.

Start Your Collateral Loan Application Today

Ready to start your collateral loan application? Focus Federal Credit Union is here to help you secure a loan to meet your goals. Contact us today if you have questions or start your application below!

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