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What Type of Loan is Best for You?

SECURED VS UNSECURED LOANS

Most people need a loan of some sort during their lifetime, whether it is an auto loan, home mortgage, credit card, or general loan for a large purchase or expense. There are two basic loan types – secured and unsecured. While Ironworkers USA Credit Union offers both types of loans, it’s important to understand the differences.

SECURED LOANS

Secured loans are loans that are secured by a specific form of collateral, including physical assets, such as property or vehicles, or liquid assets, such as cash. If you cannot repay the loan, the lender may take your collateral to get its money back.

Mortgages

A mortgage loan is used to buy a home or other real estate. Fixed-rate and adjustable-rate mortgages are the two main types of mortgages. If you don’t make your mortgage payments when due, a lender may take possession of your home through a foreclosure process.

Home Equity Lines of Credit (HELOC)

A home equity line of credit is a form of mortgage loan where your home is used as collateral to borrow money. The HELOC is a flexible revolving line of credit allowing you to withdraw funds at any time. If you cannot pay back the loan, the lender could foreclose on your home.

Installment Loans

With an installment loan, you repay the loan over time with a set number of scheduled payments. We offer installment loans including vehicle and Share- and CD-Secured loans. Make sure to fully understand all of the terms and conditions of the loan before signing any agreements, including the amount being borrowed, payment amounts and due dates, total finance charge, and the interest rate. Be aware of penalties for late payments or for paying the loan back early, and know what will happen if you cannot repay the loan.

Visa® Shared Secured Card

The Ironworkers USA Credit Union Visa® Share Secured card is a great way to establish or rebuild your credit. While this secured card acts like a traditional credit card where you can pay for purchases now and pay the balance each month, your Share account is used as collateral against purchases made.

UNSECURED LOANS

Unsecured loans do not use property as collateral. As these are considered to be riskier than secured loans, they usually have a higher interest rate.

Visa® Credit Cards

Credit cards allow you to purchase products and services now, but repaying the balance before the end of your billing cycle is required to avoid paying interest on your purchase. The credit card issuer sets a credit limit on how much you can charge.

Signature Loans

Ironworkers USA Credit Union’s Signature loans are installment loans – made easy. You can borrow money for whatever you need using just your signature and credit history. As with other installment loans, be sure to understand all the terms and conditions before you sign any loan agreements.

Personal Lines of Credit

Our personal lines of credit offer you access to funds when you need them. You apply for a certain amount and use only what you need while having the rest available in case of emergencies or for future use.

Ironworkers USA Credit Union makes applying for loans fast and easy with our online application. Before applying, it’s a great idea to check your credit score to ensure all your accounts are accurate and your credit score is where you want it to be. Checking your credit score is free for members online here or through our mobile app.

For more information about our loan programs, give us a call at 1-877-769-4766, and we’ll help you get started today!

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