Regardless of the reasons behind a damaged credit score, there’s a path to rebuilding credit that avoids high interest rates and empowers you to regain control. We asked Kitsap Credit Union Lending Specialist, Aaron Burns why you should consider a Share Secured Loan as your solution.

Q: What is a Share Secured Loan?

A: A Share Secured loan is a type of installment loan that allows you to borrow money using funds in your share savings or certificate as collateral. The money you borrow is available all at once and is paid off in monthly amounts, called installments.

Q: How does it help me build my credit?

A: As far as credit reporting goes, the Share Secured Loan shows up on your credit report as a normal installment loan. This is helpful if you are working to establish credit or rebuilding credit because it provides the opportunity to build a history of making regular and on-time payments.

Q: How do I know if this is right for me?

A: A Share Secured Loan can be beneficial to anyone who wants to rebuild credit including those with damaged scores due to past financial challenges, individuals with limited credit history, those who want to avoid high interest rates while rebuilding credit, and those looking for a responsible way to access funds without compromising financial stability.

Q: What are the benefits of a shared secure loan?

A: There are many benefits from opening a Share Secured Loan. First off, the qualifications for a Share Secured Loan are based off the existing share savings balance, not credit. Share Secured Loans are relatively low-risk and an inexpensive way to build credit.

Kitsap Credit Union offers this loan in amounts as low as $300.00 at a fixed rate just 2% above the APY of the securing savings product. For current savings rates, visit

Additionally, funds are disbursed in a lump sum, so you’ll have access to the full amount of your loan up front.

Finally, at Kitsap Credit Union, you can manage your Share Secured Loan through your Online or Mobile Banking account which is simple to set up and easy to access any time.

Q: Are there any downsides I should know about?

A: Like any installment loan, a Share Secured Loan means you’ll have a monthly payment due so missing payments can negatively impact your credit. Plus, the funds used as collateral are unavailable for you to access, however as you make payments and the loan balance decreases, the funds in your share become available.

Despite these downsides, the Share Secured loan can be a valuable tool for credit building if managed responsibly.

Q: Is there anything else I should know?

A: To open a Share Secured Loan, you’ll need to complete a loan application that includes credit pull, although the main qualification is based on the funds you have in your savings or certificate account.

Also, the Share Secured Loan can be used for more than credit building. If you are planning on making a large purchase and have the funds available in your share for this purchase, rather than spending the funds and never receiving them back, you can pledge the funds you have towards a Share Secured Loan. This enables you to get a competitive interest rate and allows you to earn back the funds overtime as you pay off the loan, so that you are paying yourself back.

To learn more about Share Secured Loans visit or reach out to Kitsap Credit Union for assistance.