whats the point of using a deposit at one bank as collateral for a personal loan from another.
any other reason other than the deposit is locked up as a CD?? i can understand if someone has an investment portfolio and just needs cash, but why go to a different bank?
You take out a sum of money, post it as collateral, use it to borrow a larger sum; rinse and repeat. If you can manage to pull this off before the first loan hits the credit report, you can borrow a substantial some of money.