I had a few people e-mail me and ask where they could find the 1.75% interest rate on the loan I recently wrote about and to be honest,  I thought it would be really easy but even the web didn’t simplify the search too much.    The first step is to visit your local credit unions in your town and find out what the rate.    For larger cities, the rate should be competitive and you should be able to find one that offers this low rate, for smaller cities it may be more difficult so maybe getting a relative to help you open one in the big city might be an idea.

I typed this in the Bing search engine, “shared secured loan 1.75% credit union” and I got a ton of responses.

Here are just some of the credit unions that offer this low secure loan rate.

Polish & Slavic Federal Credit Union (New Jersey) – Rate between 1.75% to 2.50%

AOD Credit Union (Alabama) – Rate of 1.75% above CD rate.  Note: CD rate is low.

Vantage Credit Union (Illinois) – Rate of 1.75% (variable).

I am not endorsing any of these institutions nor am I validating the rates but simply reporting on what I saw on the web for each credit union.  To be fair though, the rates do vary greatly from credit union to credit union and some of the terms are fixed for a period of time anywhere from 24 months to 60 months while others vary month to month.  It would be great to have a consolidated website that reported the current rates for each credit union similar to what BankRate.com does for banks but I couldn’t find any website that maintains that list, perhaps a niche market for a savvy web-entrepreneur?  I am beginning to think this is one of the best kept secrets out there!   I must have been lucky to have a credit union with such a low rate right off the top!

So what I did was get a fixed rate of 1.75% for a period 36 months which would reduce my student loan from the 6.8% rate it’s at now.    Finally, people are asking me what happens when you take the money out and the answer is you can’t.   At least not take any out if there is a remaining balance or perhaps a portion thereof and I haven’t even considered it because in a pinch you can simply direct the payoff from the secured deposit over to the loan.    Again, this financing framework isn’t probably for everyone especially if you’re living paycheck to paycheck but then again, I’m not writing for that demographic anyway so this shouldn’t be the solution to debt problems for the weary.