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Charles Schwab Pledged Asset Line review

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Access funds from your investment portfolio with this line of credit.

  • Best for borrowers with at least $100,000 in eligible assets in a Charles Schwab account.
  • Pick something else if you don't want to risk your investments for a line of credit.

$20,000,000

Max. Loan Amount

Varies

APR

Details

Product NameCharles Schwab Pledged Asset Line
Min. Loan Amount$100,000
Max. Loan Amount$20,000,000
APRVaries
Interest Rate TypeVariable
Late Fee$25

Expert review

Kellye Guinan

Review by


Kellye Guinan is a writer and editor with Finder and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.

Expert review

A Pledged Asset Line from Charles Schwab is ideal for current customers looking to take advantage of their investments without selling them. You can borrow against up to $20 million in investments by getting access to a line of credit. There are no set-up fees involved, and it comes with a flexible repayment schedule with no set term.

But there are inherent risks to borrowing against your assets. And with a minimum loan amount of $100,000, this isn’t a good option if you just need access to a small amount of funds. Charles Schwab also reserves the right to change your interest rate at any time without notice.

Not sure you want to borrow against your investments? Compare your unsecured personal loan options below.

First, am I eligible?

Charles Schwab doesn’t list any specific requirements to open a Pledged Asset Line (PAL). At the minimum, you’ll need to have at least $100,000 in eligible assets in your Charles Schwab brokerage account to secure your line.

What assets are eligible for collateral?

Charles Schwab considers any of the following assets as collateral:

  • Marginable equity valued at $3 or more per share
  • Mutual funds
  • Exchange-traded funds
  • Certificates of deposit
  • Cash
  • Corporate, Treasury, municipal and government agency bonds

Pros

  • Flexible repayment schedule with no set term
  • Large credit lines available
  • No set-up fees

Cons

  • Need to have at least $100,000 in eligible assets
  • Must make an initial draw of $70,000
  • Can be a risky investment if the market takes a hit
  • Interest rates can change without notice

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How do I apply?

You can apply for a Pledged Asset Line by calling 888-725-3630 or visiting your local Charles Schwab branch. Or if you’d rather have someone contact you, you can fill out a quick online form:

  1. Visit Charles Schwab’s website and hover over What We Offer.
  2. Click Pledged Asset Line under Banking.
  3. Scroll down and click Request more PAL information.
  4. Enter your full name, email address and phone number.
  5. Select your client status, the amount you’re interested in and the purpose of your PAL.
  6. Click Send.

What happens after I apply?

Charles Schwab will be in contact with you to set up your account and go over the next steps. If you’re approved for a PAL, your assets will be held in a separate Pledged Account. You will need to make a draw of at least $70,000 — the current minimum initial draw amount. After, the value of the assets held in the account must exceed either the minimum value of $100,000 or your outstanding loan balance.

How do repayments work with Charles Schwab?

Once you open a PAL, you can draw from it whenever you need. Interest accrues daily, and you’ll need to pay any interest charges on the monthly due date.

Keep an eye on the lending market and your investments to make sure you have enough equity available to borrow against. Have questions? Reach out to a Charles Schwab banking specialist by calling 888-403-9000 or visiting your local branch.

Before you dive in, explore other loans available at Charles Schwab. Or compare even more personal loan providers.

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