aints68 Posted March 6, 2005 Report Posted March 6, 2005 I had been told by people and also read on these posts about getting a bank to make you a loan against secured savings. I'm having a lot of difficulty with this. A lot of banks around here won't do it at all, and the few who will will not do it for less that $2500. 00. That's a lot of money for me to tie up right now. I saw another post on here about ING Direct, but when I go to their web site, I can't find any info on this. If anyone has had any dealings with this, could you please help me. I need to knw:1. Do they do this?2. What is their minimum loan amount on this?3.. Do they report to all 3 cra's?Any help on this would be greatly appreciated. THANKS!!
DHK Posted March 6, 2005 Report Posted March 6, 2005 Read this thread carefully.http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=26257As you said, most banks won't do this - but credit unions will!If you're taking out the loan for the sole purpose of building credit, you want to put the loan PROCEEDS in a HIGH INTEREST BEARING account. This is where ING Direct comes in. ING won't do the loan program, but it is a good place to park your loan proceeds.Find a credit union that will do this program. I recommend DCU, but Patelco will also lend you money against your savings and/or your CD.
jq26 Posted March 7, 2005 Report Posted March 7, 2005 I just did this last week! I have a BK7 from 10/04. Looking to build more positive TLs. A bank denied me after telling me that "everyone gets secured loans with them". So I dumped the bank and did the following...I borrowed $500 secured from atlantic credit union. They pulled TU, but they told me going forward, if I need any more secured credit, there would be a streamlined process that is less paperwork and no credit check. http://www.atlanticcu.org/index/index.aspThey are paying me 0.5% on my deposited $500. They are charging me 3.5% on the loan. I took the $500 and dumped it into an ING Direct, which is paying me 2.6% on my savings with no minimum required. So my total return is 3.1% on the money, and my loan rate is at 3.5%. I couldn't quite get the money for free or make a profit like DHK had explained in another thread, but I did get my effective loan rate down to 0.4%, which isn't bad.I used a local credit union, I suggest you do the same. I had the money in hand the second day after I joined for free!
DHK Posted March 7, 2005 Report Posted March 7, 2005 Congratulations! Awesome job!A net .4% loan "cost" is still pretty darn good!
aints68 Posted March 18, 2005 Author Report Posted March 18, 2005 Thanks guys. I did some searching and found a credit union in my area that I was able to join. I just joined but haven't done the loan yet. Getting ready to do that soon. And I understand what you are saying about ING direct. Thanks for the help!
CAMassage Posted April 5, 2005 Report Posted April 5, 2005 I just opened up my ING acct and got $25 because someone referred me.I am going to try the secure loan route and put it into my ING acct. ING is now earning 3.00% interest.
jq26 Posted April 5, 2005 Report Posted April 5, 2005 That's a great way to get a "free" loan! I checked this week to see what my recently closed national chain bank savings account was paying. It was STILL a horrendous 0.25%. My ING account, as of last week, was paying 2.8% with no minimum amount required. Add the $25 bonus in there and its an unbeatable deal!
ThePeacock Posted April 6, 2005 Report Posted April 6, 2005 Would someone refer me PLEASE!!!!! If it's that simple anyway.
Champion80 Posted September 28, 2005 Report Posted September 28, 2005 Hey there everyone, I was just hoping to here some updates on your secured loan results after they have been paid, what have you noticed in scores after doing 1 for $500, $1000, $5000 and paid off in six months. I am about to start mine. Thanks.
jq26 Posted September 28, 2005 Report Posted September 28, 2005 Its hard to tell since I have revolving TLs and a very recent BK7 (11 months old) that are aging, but I paid off my $500 secured loan three weeks ago in full. The secured loan has 6 months of history. When I opened it, my scores were around 600-625 for FICOs. My FICOs are all between 650-685. I am not trying to claim that it had everything to do with having the installment loan on there, but I am sure it helped the cause. I did however notice a 10 point jump right after I paid the loan off completely. I will be opening 1 or 2 secured loans later this fall. Hopefully my scores will also jump a little once my BK becomes a year old.Also, ING Direct just increased the interest rate on their savings account to 3.4% yesterday- hard to beat that rate w/out strings attached. Its a good way to stash away the cash while you're paying off your loan. That way when the loan is paid you are now net positive the entire loan amount. Its a good way to force yourself to save and build your credit!jq
Champion80 Posted September 29, 2005 Report Posted September 29, 2005 Great thanks for the reply, what CU did you happen to use, is it only local to your area? I am in the los angeles area, but if it can be opened online that will work. And another question..Did it show up as a SECURED Installment loan, or Just Installment??
jq26 Posted September 29, 2005 Report Posted September 29, 2005 I'm on the east coast, and I used the Citadel Credit Union (formally Atlantic Credit Union). I am also a member at Patelco Credit Union. I have one of their credit cards. Its a 1% cash back Platinum card with a great rate. I was approved early this summer for the card even w/ my BK on there. They are located in California, which is good for you too. I would recommend using them...explain your situation to them and they'll help you out.
jq26 Posted September 29, 2005 Report Posted September 29, 2005 From Patelco's Website:Patelco's Current Secured Loan Rate: 3.10% Savings-Secured Up to 120 months, Up to 100% of Savings amounthttp://www.patelco.org/rates/loan_rates.aspxFrom ING's website:Savings Account: Earn 3.40% Annual Percentage Yield on an FDIC-insured savings account with no fees, required minimums or service charges…no matter how much you have on deposit.http://home.ingdirect.com/products/products.asp?s=OrangeSavingsAccount
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