Quote:
Originally Posted by camaropete
2. Find a local bank (best bet would be the one were you have your accounts with). Tell them that you want a one-year loan (or some other short term) for $1000 or a couple thousand. Tell them that you are doing it to improve you credit and that you plan is to take the money, put it into a CD for 6-months, then pay off the loan after 6-months or so. I had $1000 in cash at the time so they just put a freeze on my checking account for that amount as collateral.
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This is actually a really good idea, if you have the cash to support it. What this is called is a power of shares loan - I arranged one of these with my mother, and its how I financed my current car at 3% interest. My credit union (not sure about yours) sets the interest rate at 2% higher than the rate on the account being used as collateral.
- Xanthos