Build credit with a secured lo

Discussion in 'Credit Talk' started by Jim, Sep 29, 2000.

  1. Jim

    Jim Well-Known Member

    Just paid off a secured $1,000 loan from the credit union. It had 10 month terms of payment. I made 3 payments and paid it off. It is now a good credit item in my Experian report. This cost me about $5 in interest. I plan to do one of these loans each year until my foreclosure and B.K. are off my report.
  2. Alex - Cre

    Alex - Cre Guest

    RE: Build credit with a secure

    Hi Jim:

    Good move! I wish you luck. Here's some more free tips on building a better credit record:
    Hope this helps.

  3. molly

    molly Well-Known Member

    RE: Build credit with a secure

    What bank did you go through and is $1000 the lowest amount that they will do a secured loan with?
  4. rick

    rick Well-Known Member

    RE: Build credit with a secure

    Was the secured loan reported as secured? Do you know if that makes a difference?? (since it looks as though credit cards reported as secured as not as beneficial as those that are unsecured.)
  5. roni

    roni Well-Known Member

    Mine was.

    MY secured loan with Chase was reported as secured.
  6. Doris K.

    Doris K. Well-Known Member

    RE: Build credit with a secure

    Keep in mind that secured loans aren't always secured with cash. Any auto loan, mortgage, or other financing of a repossessible object is a secured loan. "Secured" simply means that arrangements have been made in ADVANCE, so that the bank is able to recover at least part of its loss from you in case you default.

    I doubt having a loan reported as secured would cause as many problems on a credit report as a secured credit card. Secured credit cards are usually associated only with those who pose some sort of credit risk and can denote bankruptcy, collections and charge-offs, repossessions, and judgements. They look a lot better for younger people who take out secured cards to establish credit.

    Still, secured or not, a positive credit line can do nothing but help your credit score; however, like anything else, it can contribute to having too many open credit lines if you have too many accounts open at once.

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