Cash Secured Loans

Looking for the best rate on a personal loan you can use for any purpose? Ask us about our guaranteed credit option. With a secured loan from First Exchange Bank, you can utilize your savings account or CD as collateral to help establish or repair your credit. As long as you repay your secured loan according to its terms, you’ll be able to maintain your savings account balance while still earning interest. Secured loans are a great way to get a personal loan at the best rate possible.

What is a Cash Secured Loan?

There are two types of personal loans, cash secured and unsecured. A cash secured personal loan lets you borrow against the value of an asset such as your savings account or CD. Instead of withdrawing funds from savings, preserve your cash cushion and borrow the money at an affordable interest rate instead.

Both secured and unsecured personal loans are term loans, meaning you borrow a lump sum and repay it, plus interest, in fixed monthly payments over a predetermined period of time. The difference is that an unsecured loan isn’t attached to an asset, meaning it’s riskier for lenders and usually comes with a higher interest rate than with a secured loan.

Cash Secured Personal Loan vs. Unsecured Personal Loan - describes cash secured as 'a savings account or anotehr deposit account is used as a collateral' with an image of a piggy bank. Describes Unsecured as 'No collateral is required' with an image of two people shaking hands.

Benefits of Cash Secured Loans

Secured personal loans are easy to qualify for and come with lower interest rates than on a credit card or unsecured loan. Other benefits include:

  • Flexible: Use it for anything. Lower Rates: Because the loan is secured with collateral, interest rates are lower.
  • Fixed-Term Repayment: You’ll know how much your monthly payments will be and when the loan will be paid off.
  • Improve your Credit Score: Whether you’re trying to establish or rebuild your credit, a small secured loan that you repay on time can help raise your score over time.
  • Consolidate Higher-Interest Debt: Have credit card balances? Instead of making multiple payments, consolidate them into one term loan with a lower interest rate.

How to Apply for a Cash Secured Personal Loan 

Applying for a personal loan is a quick and simple process. You’ll just need to provide basic information such as your name and address, show photo ID, social security number, and state your current income. If you use a savings account or CD as collateral, your credit score and income will not be factor in the approval process. Contact one of our loan officers to learn more!

Questions about Personal Loans? Contact A Lender - Image of people in suits

Apply For A Cash Secured Personal Loan!

We’ve helped generations of West Virginians reach their financial goals and we can help you, too. Come experience our friendly and personal service for yourself! Visit us in Morgantown, Mannington, Fairview, Fairmont, Hundred or White Hall. 

Contact the North Central West Virginia loan officers at First Exchange Bank to learn more about secured personal loans or click the button below to get started.


*Subject to credit approval. Please contact your local First Exchange Bank for current interest rates.


Cash Secured Personal Loan FAQs

What can I use as collateral for a secured loan?

You can use your First Exchange Bank savings accounts as collateral. Choose from Personal Savings or Certificates of Deposit.

Can I get a cash secured loan with bad credit?

Because you’re borrowing against other funds you already own (a savings account or CD), your credit score will not be a factor in the approval process. Contact one of our loan officers to discuss your situation. 

What if I default on a cash secured loan?

If you’re having trouble making payments on your secured loan, contact us to discuss your options. West Virginia is a “right to cure default” state, which means you get a certain period to catch up on missed payments and late fees. However, if you go through with the default, you’ll lose the savings account used as collateral and the default will be reported on your credit report.

Can I use a cash secured loan to consolidate higher interest debt?

Yes, you may use your cash secured loan for any purpose, including debt consolidation. The advantages of consolidating higher interest debt such as credit card balances includes saving on interest paid and having just one monthly debt payment instead of several.