Turn Cash into Credit

A low credit score doesn’t have to be a life sentence. Your financial history does not have to determine your financial future. Don’t let previous delinquencies, charge offs, repossessions, or even bankruptcies continue to hang over your head. Get a share secured loan from Amherst Federal Credit Union and start building your credit back up with ease. Share secured loans are available to both new and existing members. And best of all, no credit check. Read how it works at Amherst FCU.

1. Secured by cash deposit. Have at least $500 in cash? Deposit at least $500 into a share/savings account and we’ll secure or “freeze” that portion of your account balance. Then, you’ll receive a certified cashiers check for the same dollar amount that you secured with your cash deposit. The check is then yours to do with as you wish. You may choose to deposit all or a portion of the check at the credit union, cash the check, make a payment on your share secured loan, or bring it to another financial institution.
   
2. How it works. Share secured loans are given an interest rate that is 1.00% APR lower than our new car rates at equal terms, which receive our lowest posted rates. Every time you make a payment on your share secured loan, the portion paid toward the principal is unsecured or “unfrozen” from your share/savings account and made available to you. That means when you make a payment, you’re only “losing” the small amount that goes toward interest.
   
3. Credit reporting. Amherst Federal Credit Union does not run a credit report for share secured loans. The remaining balance of the loan is always secured or “frozen” in a share/savings account and acts as a good faith deposit in the event the loan is defaulted on. We report monthly to all four major credit bureaus. When your share secured loan is kept up to date, and regular on-time payments are being made, these reports will positively impact your credit report.
   
4. Avoid predatory lenders. If your score is low, or if you have previous delinquencies or other negative impacts on your credit report, you may feel like you’re stuck with whatever high interest card or loan you can get. Even if you have money saved and are making consistent income, getting loans can still feel like a hassle due to the results of a credit report. Start building your score back up and begin building up your credit score with a share secured loan.
   
5. Example. Member A wants to build their credit score. They deposit $500 into a share/savings account and apply for a share secured loan with a term of 10 months. They are approved and given a low interest rate of 3.24% APR (which is 1.00% APR lower than our lowest rate as of the date of publication). The $500 on deposit is secured or “frozen” in their AFCU share/savings account and they are given a certified bank check in the amount of $500. Their first payment of $50.62 is due exactly one month from the date of signing for the loan. When they make their first payment of $50.62, approximately $1.35 will be paid toward interest, and the remaining $49.27 will be paid toward the principal and subsequently unsecured or “unfrozen” from their share/savings account balance. If Member A continues to make regular monthly payments for the entire 10 month term, they will only pay a grand total of $6.13 in interest while building their credit score and history with positive monthly reporting to all four credit bureaus.
   
   Additional tips. Use the funds from the share secured loan to make a large payment onto your loan balance the same day you sign the paperwork. If you make a $400 payment on your $500 loan, the $400 will be released into your share/savings account and you will only be responsible for paying $100 over the next 10 months. Leave $150 in your savings account and set up a recurring automatic payment of $11/month to effortlessly pay off the rest of the loan and reap all the benefits of positive credit reporting for the entire term.

Published June 1, 2026