Can someone please explain to me how secured loans work?

Answers:2   |   LastUpdateAt:2012-09-08 23:58:02  

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Asked at 2012-09-03 13:04:02
im 19 and just want to get a small loan to build my credit, so that's all I heared could only make that purchase and get a secured loan against my savings account I have no i dea what that means , how I have to get my savings to get a loan do I have to have more money in my savings account then what the loan is and if I get a loan as small as $ 1,000 and I do not even use the loan money i just have to use the money to repay the loan and therefore you can only build credit is a smart idea MedlinePlus MedlinePlus I'm trying to say is that i just go to the bank up to tell you that I get a loan to build my credit only going to understand what a loan of $ 1,000 home you spend the waiting time until the money month is over and pay the bill with the loan money is that it is a good idea
Answer1christalAnswered at 2012-09-08 06:33:02
Secured loans are loans that have collateral that can be seized and sold to satisfy the debt . The guarantee may be the car ( for a car loan ) , home ( for a mortgage ) or cash in a savings account / credit ( secured credit card ) . MedlinePlus MedlinePlus When you get a secured credit card , you put money in the bank to pay off the credit card . You make your monthly payment on maturity . You are borrowing your own money in the bank and pay extra for the privilege of borrowing your own money . MedlinePlus MedlinePlus You do not need a credit card to build credit . I have not had one in over 20 years . You need a savings account .
Answer2TityanaAnswered at 2012-09-08 23:58:02
use the money in your savings account for a secured credit card . MedlinePlus Use it wisely and you will build your credit score , after a while , you will be eligible for a credit card and other unsecured loans.
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