Thursday, September 8, 2022

Alternatives to CD loans

 

If your bank does not offer CD-secured loans or you want to explore similar options, consider these:

  • Unsecured loans: Unsecured loans don’t require collateral, so you’ll need good credit to qualify, and interest rates will likely be higher than those on CD loans. Still, these loans are a good option if you don’t want to put your assets at risk.
  • Savings-secured loans: With a savings-secured loan, you pledge your funds from your savings account as collateral. Savings-secured loans often feature fixed-rate terms, enabling you to make the same monthly payment throughout the life of the loan. Since your own funds back the loan, banks often offer same-day approval.
  • Secured credit cards: If you do not need a specific amount of money and simply need to build or repair your credit, a secured credit card offers great benefits and you can eventually qualify for an unsecured credit card. To get one, you must make a cash deposit, which establishes the limit you can spend using the card. For instance, if you deposit $1,000, you can use the card to spend up to $1,000.

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Bottom line

 If you have a CD and are in need of fast cash, a CD loan could be a viable option. It’s an easily accessible debt product that can help imp...