How to Build Credit with a Share Secured Loan
Helping Modesto Families Grow Stronger Credit, One Step at a Time
Your credit score plays a big role in your financial well-being—from qualifying for a Mortgage to securing better interest rates on loans and credit cards. But if you're just starting out or trying to recover from past credit missteps, improving your score can feel overwhelming.
At Modesto’s First FCU, we make it easier for local families to take control of their financial story—a Share Secured Loan could be your first (or next) smart step toward lasting credit health.
What Is a Share Secured Loan?
A Share Secured Loan lets you borrow money using your own savings as collateral. Instead of borrowing money with no backing, you borrow against funds in your M1FCU Savings Account. Those funds remain untouched while you repay the loan, giving you structure, security, and credit-building power.
How it works:
You “lock” a set amount in your M1FCU Savings Account.
You borrow that same amount as a loan.
You repay it monthly, and those payments are reported to the credit bureaus.
It’s simple. It’s structured. And best of all, it’s designed to grow your credit score safely.
Explore all loan options at Modesto’s First FCU and find the right fit for you!
Why Share Secured Loans Are Perfect for Building Credit
If your credit score needs a boost or you have no credit history at all, traditional loans might be hard (and expensive) to get. That’s where a Share Secured Loan from Modesto’s First FCU really shines:
No Credit Score? No Big Deal - Approval doesn’t hinge on having perfect credit—your savings are your strength.
Your Good Habits Get Noticed- Every on-time payment is reported to the major credit bureaus, helping your score grow.
Predictable Payments, Family Budget Friendly - Affordable, fixed monthly payments make it easy to plan ahead without surprises.
Spend Smart, Stay on Track - Since you’re borrowing against your own savings, there’s no risk of racking up unexpected debt like with a credit card.
This is a safe, steady, and proven way to show lenders—and yourself—that you’re ready for bigger financial opportunities.
Share Secured vs. Traditional Loans: Which Is Better for You?
When it comes to building credit, it’s important to pick the right kind of loan. Here’s how a Share Secured Loan from M1FCU compares to traditional loans and credit cards:
Traditional Loans and Credit Cards:
High hurdles to qualify. You usually need a strong credit history to get approved.
Higher interest rates. If your credit isn’t perfect, you could pay a lot more in interest.
Bigger financial risks. Missing payments can seriously hurt your credit and your budget.
Temptation to overspend. Credit cards, especially, can lead to growing balances and extra fees.
Share Secured Loans at Modesto’s First FCU:
Approval based on your savings, not your credit. Your own deposit secures the loan.
Lower, more affordable interest rates. Save money while building credit.
Safe, steady progress. Payments are reported to all three major credit bureaus to help grow your score.
No surprise debts. You borrow responsibly without the risks that come with credit cards.
In short, if you want to build credit safely and confidently, a Share Secured Loan is one of the best first steps you can take.
The M1FCU Difference: By the People of Modesto, For the People of Modesto.
At Modesto’s First FCU, you’re never just an account number—you’re part of a community that wants to see you thrive! We’re a not-for-profit credit union, meaning every decision is made to uplift our local families, not satisfy stakeholders.
Here’s what makes banking with us a smarter choice for Modesto families:
Better rates, fewer fees. Because we don’t answer to corporate shareholders, we return profits to you through lower loan rates, higher savings returns, and low or no fees.
Local decisions, personal service. Need help? You’ll talk to real people who live and work in Modesto, not a call center across the country.
Financial tools for real life. Whether you’re buying a car, building credit, saving for a home, or planning for the future, M1FCU offers financial products designed to help you thrive at every stage of life.
Guidance you can trust. Our team will help you choose the best options for your financial goals—not upsell you products you don’t need.
Big banks see customers. We see neighbors, families, and the future of our community.
Easy Application, Real Results—Get Started Today!
Getting started with a Share Secured Loan (and a stronger financial future) is simple—and we’ll walk you through every step.
Here’s all it takes:
Step 2: Open a Savings Account—or use one you already have.
Step 3: Choose how much you want to borrow using your savings as security.
Step 4: Apply online for a Loan or stop by our branch to chat with our friendly team.
Step 5: Make easy monthly payments and watch your credit story grow stronger!
From first hello to final payment, we're right here with you—every step of the process.
Ready to Build Your Credit the Right Way?
Improving your credit doesn’t have to be overwhelming. With a Share Secured Loan from Modesto’s First FCU, you’ll have a clear, manageable way to build or rebuild your credit with confidence.
Start building a future filled with opportunities—for you and your family—with a financial partner you can trust.