The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: MoonShadow on June 19, 2016, 11:44:14 PM

Title: Where can I get a secured line of credit?
Post by: MoonShadow on June 19, 2016, 11:44:14 PM

I'm looking for a bank, credit union, whatever that I can buy a $10K bond/CD/Share-cert and use it as collateral against a secured line of credit.  Like how one might use a home equity line of credit, but not with home equity.  I would like check writing privileges & a bank card, but that isn't critical for what I'm trying to do.  I'm having real trouble finding this locally to myself.

Title: Re: Where can I get a secured line of credit?
Post by: FIRE me on June 20, 2016, 01:07:22 AM

https://www.wellsfargo.com/goals-credit/secured-loan-types/

Title: Re: Where can I get a secured line of credit?
Post by: MoonShadow on June 20, 2016, 10:05:46 AM

Thanks for the reference.  I looked it up, then called them.  The deal killer is that they charge a 6.5% rate for a secured line of credit plus $25 per year account fee.  I can get a secured loan just about anywhere for 2-3% over the CD rate, and I'm pretty sure that Wells Fargo's CD's aren't paying 3% right now.

Title: Re: Where can I get a secured line of credit?
Post by: ShoulderThingThatGoesUp on June 20, 2016, 10:42:18 AM

Schwab will issue pledged asset lines secured by your investments, and my impression is that their rates are very good, but I don't have one myself.