what is better, credit from cards or bank loans? i mean what kind of credit gives the best score or looks better on the reports? kelly
I think the general concensus is that Installment loans which have a history of 6 months payments or more give the best score, certainly better than 6 months of cc payments. Of course, though, if the loan is from a "finance" company you could actually hurt your score.
well what if i do the secured bank thing, like open a savings with 1500.00 then ask to secure a loan with it? also, does anyone have an idea of what banks will do this, or should i try the credit union? and do you tell them you are trying to better your credit? will it report as secured? i am just freaked because i had a gulf state removed (gained 22 pts) then out of the blue today it was reinserted and i lost 44 pts!! i want to do something inbetween to help my situation while trying to get this crap fixed. thx,kelly
Kelly, There is a trick posted here - back in June, I believe and I'm too lazy to search for it for you. It involved, I believe using $1000 to secure three different installment loans and using the 'security' + interest to make regular payments for 6 monts, thereby paying it off in full and giving you three perfect payment history installment loans on your reports. In the end you'll also have your original $1000 plus interest back.
oooh! cool, i suck at searching but i will give it a go after i get thi kids and hubby to sleep. thx!!
THE DEAL AS I THINK IT WENT... $1,000 in a CD...get a loan that will report against it...borrow $1,000 make 12 monthly payments. Take the $1,000 that you just borrowed and open a second CD...LOAN...REPEAT 3rd time... CONFIRM LOANS WILL REPORT, AND 12 MONTHS IS WORTH THE HASSLE, IF YOU PAY IT OFF IN LIKE SIX MONTHS, IT WON'T HELP YOU ANY (WASTE OF TIME). IT MAY OR MAY NOT REPORT AS SECURRED LOAN. I have no idea if 3 different banks is better than 3 at one bank.
It will report as secured. I secured money from savings to take out a loan to payoff one of hubby's credit cards because I wanted another installment loan. Even if it reports as secured it will only help your score. All auto loans and home loans also report as secured. Dani
