Can a Certificate of Deposit be used as collateral for a small loan?

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Can a Certificate of Deposit be used as collateral for a small loan?

For example. a $1000 12 month CD for a $1000 6 month note.

2007-03-07 01:30:30 · 2 answers · asked by pnkrockfrank 1 in Business & Finance ➔ Investing

For example, $1000 12 month CD for a $1000 note. The purpose of this would be to try to build credit.

2007-03-07 02:16:13 · update #1

2 answers

Probably not. They'll probably encourage you to just cash out the CD and pay the penalty.

But you can always ask. Or...if you have a decent relationship with your banker you might be able to get $1000 as an unsecured loan.

2007-03-07 01:39:27 · answer #1 · answered by BosCFA 5 · 0⤊ 0⤋

Definitely, if it is at the same bank they will allow you to do this.

2007-03-07 03:42:15 · answer #2 · answered by Charles C 2 · 0⤊ 0⤋