On their website, it says that you can use your loan funds for whatever you wanted. If I wanted a small loan, say $1000, can I keep that in my checking account and use it for the payments on a 12 month loan? It says that there are no prepayment penalties. Thanks!
If your only purpose is building credit, why would you keep it in your checking account? You can use 75% of it to buy CD's, and deposit the rest in a Money Market account. That way you'd effectively pay a much lower interest on your loan. You can even purchase ING's own CD's so that your effective interest rate on your loan would be (7.5%-4%=3.5%) It's definitely a bargain. The only questions are: Do they report to all 3 bureaus and how lenient are their credit requirements. Saar
