Alliant secured loan?

[dizbuster]

I just joined Alliant Cu last week and I just funded my savings account with a transfer from my local credit union. I put $8000.00 in my savings with Alliant. I see they offer a secured loan against your savings account and I thought that would be a great way to build a relationship with Alliant.

My first question is: has anyone used this type of loan with Alliant or any other CU? Will it really help build a relationship with the CU?

I'm also not sure how much to ask for. I don't think I want to use all my savings for the loan as it would be tied up while I make payments. I've never gone this route before and am looking for some general feedback.

Thanks

[Anonymous]

Hey diz - how's it going.

Well, I have a few ideas on your question (don't I always )

1.  Alliant is a great CU.  I heartily recommend them.

2.  A secured loan is a FANTASTIC way to build a relationship.

3.  You are not correct on your thinking for amount.  If you use the entire amount of savings for the loan, you tie NOTHING up, because they give you $8000 cash from the loan.  So yes, the savings is "tied up" as collateral, but the loan proceeds are not.

4.  Borrow $8000 against your savings.

5.  Deposit the loan proceeds into your savings account, giving you $16,000 in savings now

6.  Have your payments for the loan "auto drafted" from the savings account.

7.  Make a few payments, then pay the majority of the loan down (transfer from savings balance) to reduce interest charges.

8.  Pay the loan off in 12 months so that you get a CR TL with 12 months payment history, then a "paid as agreed"

9.  The interest charged is nominal (2-3% above what you are collecting on the savings, and you are collecting on $16,000 while paying on $8000 which declines....so the interest you collect will pretty much pay the interest charges accrued.)

10.  Talk to a LO about a credit card 6 months into the loan.

Well, that's my $0.02

[score_building]

dizbuster wrote:

I just joined Alliant Cu last week and I just funded my savings account with a transfer from my local credit union. I put $8000.00 in my savings with Alliant. I see they offer a secured loan against your savings account and I thought that would be a great way to build a relationship with Alliant.

My first question is: has anyone used this type of loan with Alliant or any other CU? Will it really help build a relationship with the CU?

I'm also not sure how much to ask for. I don't think I want to use all my savings for the loan as it would be tied up while I make payments. I've never gone this route before and am looking for some general feedback.

Thanks

i haven't used this type of loan but wish i knew about it years ago: v. good move dizbuster. alliant has some of the best rates on deposit accts. and is imo a superlative CU. i am delighted to have recently become a member too, GL sounds like you are building a great foundation for other products with them going forward.