Have anyone ever heard of a secured loan where you had to send them money before you get it.?
Answers:
Sure, May not have anything to do with your credit, but the reason for the loan. If credit, loan, or colateral is in question a lender may ask for something else to hold in case you defalt. Could be a title to a car, a deed to a home, or cash. You see this a lot with credit card companies.
Bottom line, they don't want to make the loan on the merrits in front of them. Someone feels this loan is high risk.
FYI, the money they hold should also earn interest while they are holding it.
Good luck.
Yup, typically these are for people with poor or no credit. If you have no credit they are a great tool for building some. They are a first step toward being able to take out a unsecured line of credit ( a loan in which you don't have to have the same sum of money to take it out.) If you take out a secured loan banks typically "freeze" the amount of the loan in your checking account so it is virtually risk free for the bank. It makes it nearly impossible for you not to pay it back.
If you are asking should you pay some type of fee for the loan I would say no. If you are saying you are going to arrange a secured loan for $1,000 then yes you will have to give them the $1,000 and they will set up a savings account and send you back the $1,000 and you can make your payments.
If you are trying to build/re-build credit I would look into a secured Visa card with a large bank like Wells Fargo or Bank of America. They both offer good programs with low annual fees, no junk fees, and will usually approve you for unsecured status within 12 months.
Good Luck
That is what a secured loan is. It means the money you pay up front is what is the "security" for the loan. Unsecured loans basically use your credit score for security. A lender is taking a chance on you based on your credit rating or other factors.
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