How to Get an Installment Loan Guaranteed by a Savings Account
- 1). Open a savings account at a bank or credit union. If you already have a savings account, ensure that there are enough funds in the account to cover the amount of the installment loan you want to take out.
- 2). Meet with a service representative at the bank or credit union. Inform the representative that you'd like to take out a secured installment loan. Have your savings account number and identification with you.
- 3). Read any documents carefully before signing. Make sure you are comfortable with the repayment terms and interest rate of the loan agreement, and that you understand what actions constitute default and the penalties assessed for defaulting. Obtain a copy of the loan agreement for your records.
- 4). Make all of your loan payments as scheduled and on time. Remember that the money in your savings account is collateral for the loan and if you default, the bank or credit union will seize those funds. Also, keep in mind that you can't withdraw the funds from the savings account until the loan has been repaid.
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