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Discussion in 'Credit Talk' started by TASHA, Mar 30, 2001.
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Secured line of credit is where you take out a loan with your savings or CD as collateral. Just like a secured credit card, but you get a regular installment loan, with cash in hand.
I believe that a secured line of credit is like this:
YOU: deposit $2000 in a CD
Bank: obtain a line of credit using the CD as collateral.
Should you default on the loan payment, the CD is subject to reposession.
This also works for cars and the like.