Deposit Loan Programs?

[Skiboy]

Hi all,

I ran into this article today and was wondering if anyone has heard of DLP-deposit loan programs? I did a web search and could not find a thing on them or where to get some more information. Are these products a scam? or do they really help establish better credit?

How to Buy Your Home Through a Deposit Loan Program - Associated Content

Regards,

Kyle

 

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[Skiboy]

Hey guys,

Found part of the answer, DLPs basically are Cash-Secured Loans or Credit Builder loans. It sounds like many banks have different terms and different programs.

One way to start a Cash-Secured loan in order to bump your credit score up is to secure the loan with a house, car or other asset the bank can use as collateral. Example: I have an 11 month corporation that I do consulting through. I plan on bumping my score by doing a cash-secured loan against one of my rental properties. I hope this brings my score up and allows me access to more cash or bigger lines of credit in the long run for investment opportunities. The plan is not to use the credit but to help establish a better credit worthy file.

I'll let you know what happens as soon as I get into it. If you have any ideas let me know. Sure do appreciate the help on this forum.
Kyle

 

[Knowledge Kick]

Good luck man...let us know how everything turns out for you.

 

[Skiboy]

Ok, here is what happened. The bank looked at my current Revolving lines and noticed I was at 62k in revolving credit, With 18k outstanding. So my utilization ratio is roughly 29% not to bad but could be better. What they want to do is give me 18k as an installment loan against the rental house. Which would help my utilization ratio and credit mix. The only thing is I currently have this 18k at 0% till November 2009 then my rate goes to 7.99% which isn't bad. Wellfargo will only give me the loan at 10.25% I think that's pretty crummy. The property is worth 35k according to the tax papers. I paid 14k cash down and 9k off my Bofa 0% balance transfer card and the property has been rented since day one which cashflows $350 a month. I don't see any justification for that rate. At least tell me you'll take the loan on as a mortgage for 18k at 5% which would free up 100% my Revovling lines. That would just be logical.

I think i'm going to talk to another bank that handles some of my saving. They've always been good to me. This needs to be a win-win for both of us. Help my score and increase my credit lines. Bank gets a loan with minimal risk. We'll see what happens with attempt number two.

Still don't understand how some of these guys are getting 200k in credit lines with a 6 month old corp.

 

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[xcalvinx07]

you can get advice from SCORE. It is free and they have excellent counselors who want to start a business. I have used them a lot and they help greatly!

 

[Skiboy]

Wow they have some nice business tools, good ideas too. Thanks speed+

 

[Skiboy]

Hey all,

Bank gave me loan at 5.5% for 60 months, not to bad. Also found creditboard forum which has helped me get a few answers on corp credit. Learning everyday.

Regards,

Kyle

 

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