Quote:
Originally Posted by patrickt
Why would you put fifty grand in the credit union account so you can get a fifty grand loan from them for 1% more than what the account earns? (You have to leave the money in there, too.)
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Well, there are certainly more complex examples of leverage, but certainly the need to establish credit might be a reason. There are others, but this is boring.
I'm curious how long you have to leave the money there. Often, you can pull the money out within 3 months.
First Republic Bank is one bank that's notorious in wanting your money before they make loans, but then they cater a wealthy clientele.