How do share-secured loans work?
A share-secured loan is secured by your savings account , share certificate account or money market account. When you’re approved for a share-secured loan, your lender will place a hold on the savings amount you’re borrowing against. You can repay the loan through monthly automatic withdrawals, direct deposit or monthly check. If you fail to repay the loan, the savings your lender is holding as collateral will typically be used to cover the loan. Although your savings are used to back up the loan, you should avoid making late payments or defaulting. This may cost you penalties or late fees and can hurt your credit history because share-secured loans are often reported to the credit bureaus. If building credit is your goal when seeking a share-secured loan, consider taking out a small amount that is easier to pay off quickly. For more: https://cscredit.ru/kredity/pod-zalog-doli-kvartiry Who are share-secured loans best for? Share-secured loans could be a goo...