Secured loan credit check?

Question

I want to open a savings account and then turn around and get a secured loan on it.
I called my bank(wells fargo) and asked them about it. They said yes they do loans like that and yes they report to all 3 credit bureaus. But she said it depends if you get approved or not.
I dont understand why it would be difficult to get a secured loan when the bank freezes your money anyway. Even if you have bad credit it shouldnt matter because its 0% risk to them.
Can someone explain this to me?

Also, If anyone has personal experience would it be easy if you have terrible credit to get a secured loan using a savings account or CD from a big bank like Wells Fargo or BofA, or from a local credit union?

Thanks

Answer 1

The bank employee hedged her statement. It's much easier to get approved for a secured loan but they still have to do a credit inquiry.

Credit unions tend to be a little more user friendly about loans. Plus you probably get better rates. But most of the large banks would work also.