Can I Use a Certificate of Deposit for Collateral?

February 21st, 2012 by admin

Yes, you can get a secured CD loan, however, this isn’t something that is normally done unless you’re looking to rebuild your credit with a secured loan. If that is the case, then this is a very common and great way to do about doing things, because it’s such a low interest rate. The reason it’s not a common option for simply obtaining financing is that a certificate of deposit, by it’s very nature, it’s only a certain period of time. Obviously you can’t use the CD as collateral once it has aged out, which gives your loan a short period of time for repayment.

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