Collatoral

[NickC13573]

Hey guys, I was just wondering. If someone who has had this experience, or someone who works in a bank. So if a large bank loan (say $100,00)requires a house for collatoral (SP?), what does a bank loan on the low side require? I heard the crazy story of a spider drawing by a three year old, but what is normal?

[Thomnipotent]

Vehicles are common (bring the title). Also if you have a Certificate of Deposit, you can use it as collateral for a loan in the same amount. CODs are great, I suggest people drop a bit of money in those if it's available.

 

Anyway, yeah. Vehicles, for the most part.

[Blasphemywebleed]

Unless it's to start a business or an emergency then i'd strongly disagree taking a loan or credit on anything. Personally I don't buy anything that I don't have cash in the bank to pay for and i've done pretty well for myself so far. You don't need the baggage of debts over your head.

[pepper2008]

Be careful of the terms and conditions of your loan. The interest might be a killer in the long run. Then you might face the Repoman

[infinitywpi]

Often times, you need to show you have something of value that won't lose it's value. More often than not, that means... money. Want a loan for two thousand? Put two thousand in a savings account that can't be touched, use that for colateral. The bank'll give you two grand, charge you interest, and if you don't make your payments, they take the savings account. If you do make your payments, hey, you get two grand back when it's all paid off.

[jagilki]

I heard the crazy story of a spider drawing by a three year old, but what is normal?

 

If that's the one that was going around a while ago, it wasn't put up as collateral, and it wasn't a three year old.

 

Supposedly he owed some money for something and tried claiming that picture was worth the ammount owed.

 

http://news.ninemsn.com.au/article.aspx?id=665847