On a credit building loan, can I spend the money the bank puts in my savings, or is it held until I can prove good payment history?
To find out if the funds in your savings account can be spent, check the disclosure documents that you should have received when you signed the loan papers. If the disclosures show that your savings account was pledged as security for the loan, you won't have access to the savings account, or the lender will restrict your access to money in the account that's over and above the loan balance. If the disclosure about a security interest indicates that no security interest was taken, your savings account should be accessible.
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To find out if the funds in your savings account can be spent, check the disclosure documents that you should have received when you signed the loan papers. If the disclosures show that your savings account was pledged as security for the loan, you won't have access to the savings account, or the lender will restrict your access to money in the account that's over and above the loan balance. If the disclosure about a security interest indicates that no security interest was taken, your savings account should be accessible.
