Items Acceptable for Collateral

What is Collateral?
Collateral is what you promise to give to the bank if you do not pay back the loan. It is often needed to obtain and to secure a loan.

What Can Be Used as Collateral?
The following items can be used as collateral to obtain a loan:

• A home
• A car
• A savings account
• Investments, like a 401K or other individual retirement account (IRA)

If you are applying for a loan to buy a car or home, you can use the car or home you are purchasing as collateral. Items you are purchasing on credit and do not own yet can be considered collateral.

What Can Not Be Used as Collateral?
The following items cannot be used as collateral:

• Furniture
• Clothing
• Family china
• Store credit cards

Household goods that you already own cannot be used as collateral.