Feedback Form

Cross-collateralization

Cross-collateralization

Cross-collateralization is a term used when the colateral for one loan or account is also used as collateral for another loan or account. If a person has borrowed from the same bank that they have home loan secured by the house through, or a car loan secured by the car, and so on, these assets can be used as cross-collateral for all the loans. Also if a person has an unsecured debt such as a personal loan or credit card with a creditor related to the bank that the individual has a checking or savings account with, the debt can be taken out of said account. Also if the person pays off the car loan and wants to sell the car, the bank may veto the deal because the car is still used to secure the home loan and other loans. Technically, cross-collateralization expires when the borrower has no outstanding loans with the bank. A cross-collateral provision is widely used by the banks to decrease risk.

If you have a checking account in a bank related to an unsecured debt it may be wise to close the account and move your money to an unrelated bank. It is important to close the account completely or the account may be overdrawn severely if left open; even in the least.
Cross-Collateralization is a very serious matter, and the information above is given as a warning; not all cases are the same. It is something to be very aware of so that you can protect your assets.





Crosscollateralization - To learn more about this author, visit Eric Pinola's Website.

Like this article? Share it with your friends

Related Forum Posts Article Feedback
Article Feedback No article feedback found.
Leave Your Feedback

Related Articles Related Articles

Related Forum Posts Related Forum Posts

Related Forum Posts Related Businesses - Evan Elite Authors

To learn more about the Evan Elite Author Program please contact us.

About The Author


Eric Pinola
(Visit Eric's Website)
Credit Alliance Group is a leading debt management company in Dallas, Texas that provides solutions to any unsecured debt challenges. As the director of enrollment I am encouraged to see how much we can help people each day. Our programs are built around the client’s budget; so that they can become debt free again without unnecessary stress. We offer a Basic, Pro, and Elite edition of our services. The road to becoming debt free can be long and hard so it is important to make the journey with a company that truly cares and has the experience to get the job done right the first time. Check out our website; or give us a quick call for a free no obligation enrollment package with your figures in it. 1-866-359-5677 www.creditalliancegroup.net or debt-credit-repair.com/index.html
About The Author

View Author Blog
Credit Alliance Group - Dedicated to helping people to become debt free.
Credit Alliance Group
View Author Blog

View Author Video
View Author Video

Free Downloads


Eric Pinola's

Complete
List Of
Sales
Articles

First Name
Last Name
Email
Is the night Dark or Bright?
 
If you enjoyed this article, get Eric Pinola's Complete List of Sales Articles For FREE!

More Eric Pinola
Excellent Credit Score yet not able to obtain new credit
How Do I Know I Need Help With Debt
How Does Debt Settlement Affect My Credit
Debt Consolidation vs Debt Management vs Debt Settlement
Crosscollateralization
The Bankruptcy Myth
Are You Teaching Your Kids Financial Responsibility
Debt Management Options for the Average Person
Is this the first real economic dip for Generation X
Basic Interview Etiquette
Become An Author


 
 
 



Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?


Sales Lessons From Starbucks And Dell