building positive tradelines effect

Discussion in 'Credit Talk' started by Ender, Aug 28, 2001.

  1. Ender

    Ender Well-Known Member

    Well, I opened a savings account at the local credit union today.. and also got a loan for $3000. My monthly payments are 259.80 or so starting in two months.. I need to also open a checking account there, but I think I still may have an NSF entry in Chex that wasn't cleared up a while ago.. otherwise, I would setup a direct payment monthly so I wouldn't have to worry about it.. thhe credit union also said they report to all 3 CRAs and they also didn't make ANY inquiry when I gave me the loan.

    I was wondering tho, does the CRA's mark the loan as a secured loan? I hope not.. it would be much benificial if it just says a $3k loan.

    The other thing that the agent asked me to consider was taking money out for my car loan.. like taking out the blue book value of my car. My car is completely paid off and blue book is probably around $8k I am assuming. So if I get $8k with the collateral of the car, and just let that sit in my checking account and pay off that car loan in a year, she said that would be another way to build positive tradelines.. anyone ever heard of doing this? However, she said the interest rate would be between 6-11% and would also do a hard inquiry on experian.. so I told her I would need to think about this. However, i would be getting $8k plus about 3% interest at most.. so it would cost me about $120 or so for a year's worth of perfect payments on a large $8k car loan. She said it would show up as a "car loan" on my credit reports.. how effective is this and is this a realistic thing to do??
  2. dlo64

    dlo64 Well-Known Member

    I took a secured loan out at a bank and 2 credit unions back in June. The bank and one of the credit union loans just started reporting in the last two weeks.

    On my Experian, the credit union loan does not indicate that it is secured. The bank loan has not shown up there at all yet.

    On my TU, both loans show as secured. In fact the bank loan shows as an auto loan which is a mistake. I will have to call the bank and get that corrected.

    Can't tell you about EQ as back in early July I received a stall tactic letter during a dispute regarding my address. The disputes had to be resent the third week of July along with the documentation of change of address. I still have not received that one yet and will have to contact them by the beginning of next week if I don't get it.

    What did the credit union tell you? They are the ones that are responsible for either reporting it secured or not. Then again, it might be the CRA as well as my loans report differently between two of the CRA's.

    Never heard of a auto title loan through a CU so I can't help you there. There are places where I live that do this type of loan, but are not associated with a bank or CU and I don't know if these companies report to the CRA's. One of my CU's will do secured loans with stock certificates as collateral.
  3. Cadillac408

    Cadillac408 Well-Known Member


    Just curious, what is the name of the Credit Union that you are going through? If you don't want to post that info here, send it to me via email. My email link here is enabled.
  4. Ender

    Ender Well-Known Member

    dlo: what is the bank that you went to? Is it a national one? Like bofa or wells fargo? Also, do they report to all 3 and did they pull a hard credit inquiry?

    MP$40: i went to golden one for my credit union..
  5. godaddyo

    godaddyo Well-Known Member

    I believe it has to do with how the lender reports the information. I was able to get a bank to lend me funds secured without reporting it that way.
  6. Mist

    Mist Well-Known Member

    Many years ago I refinanced a car I already owned outright thru my credit union based on the blue book value. It simply showed as an installment loan. There was no specific reference to it being an auto loan or that it was secured. I also financed my last new car purchase thru my credit union. It, too, simply showed as an installment loan. The credit union reported to all three credit bureaus but in the case of mine only updated balances every quarter rather than monthly.

    Both were paid off, no negs, and now TU and EQ have deleted them with no reason. One should have stayed on my reports for another year and the other should have stayed on for another 4 yrs!
  7. Ender

    Ender Well-Known Member

    Thanks for the information Mist.. I am sorry to hear about your deletions of the positive tradelines.. I would definitely follow up on that and make sure those are reinserted..
  8. dlo64

    dlo64 Well-Known Member


    The bank I am dealing with is a local bank in the Chicago area. They have not as of yet (hopefully won't be) gobbled up by the likes of Bank One, etc.

    The bank loan is supposed to report to all three. Yes they did do an inquiry on my TU. It pretty much went like a regular loan and I think it went that way was because they were using the loan proceeds as the security deposit. I did not have to put up any up front funds. At the loan closing, I did not receive a check, but an account form with the information for the CD they put the money into. The bank will hold the CD until the loan is paid off, but the term of the CD matches the term of the loan. If I pay back the loan earlier as I anticipate doing (it is a 3 yr. term), the funds are still locked into the CD until the original payoff date.

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