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SECURED LOANS ING


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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!!

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Read this thread carefully.

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=26257

As 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.

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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.asp

They 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!

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  • 2 weeks later...

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!

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  • 3 weeks later...

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!

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  • 5 months later...

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

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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.

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From Patelco's Website:

Patelco's Current Secured Loan Rate: 3.10%

Savings-Secured Up to 120 months, Up to 100% of Savings amount

http://www.patelco.org/rates/loan_rates.aspx

From 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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