CD- and Savings-Secured Loans

A CD-secured or Savings-secured loan from Bank of Utah is a personal loan which requires a borrower to include a [Savings Account](/personal/checking-savings/savings/) or [Certificate of Deposit (CD)](/personal/checking-savings/cd-and-ira) as collateral for the loan.

Secured loans are a great way to build or rebuild credit by providing monthly repayment opportunities with fewer qualification requirements and without pulling credit.

CD-secured or Savings-secured loans also allow quick access to cash, borrowing from what already is in the account. The funds from a secured loan allow you to cover a variety of expenses like home improvements, college tuition or consolidating debt with higher rate balances.

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Benefits of a Secured Loan from Bank of Utah

  • Fast approval - typically less than one business day
  • Continue to earn interest in the CD or Savings account
  • Typically has lower rates than credit cards
  • No prior credit needed
  • Larger loan amounts and fewer requirements for qualification than other types of loans
  • Up to 100% of the CD or Savings account can be borrowed against
  • A great way to establish or re-establish a good credit history

Fixed interest rates are based on the term of the loan. The maximum term for a Savings-secured loan is 36 months; the maximum term for a CD-secured loan is the term of the associated CD.

How Can a Secured Loan Help Me Build or Rebuild My Credit?

Simply put, your credit score is a product of past payment histories. A secured loan requires making monthly payments on time, which will count towards rebuilding your credit! Additionally, qualifying for a CD- or Savings-secured loan is easier than other loans, making it a great option for those looking to build or improve their credit score.
A common way to build credit is through the use of credit cards, but that may not always be possible. Unfortunately, these other credit building options require a deposit or the creation of a new loan. With a Bank of Utah secured loan, an additional deposit is not required - the money you have in the CD or Savings account is used as collateral.

Remember: if you miss payments, it could hurt your credit.

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To get current rates or for more information about a CD- or Savings-secured Loan, contact a Loan Officer.