Anyone have any experience in these? Do they pull your credit? Is it possible to get denied? Or is this a sure-fire way of getting some tradelines? Please Advise! Thanks
I would suggest speaking with the credit union you plan to use directly as each credit union has different policies on this. My credit union does "share secured loans". Minimum amount is $500. There is no credit check; however, you must request that they report the loan to the bureaus and confirm up front how it will be reported. You can borrow at 100% of the funds you have in your account (e.g., savings = 1000 loan = 1000). The funds become frozen and you do not have access to them for the duration of the loan. (As your principal gets paid down; however, you can request that the corresponding amount of your collateral be realeased). You cannot be declined as long as you have the funds, they will give you a loan. Many have said that this is a quick method of increasing your credit rating. I haven't seen any actual stories posted that substantiates this. I would also ask the loan officer at the credit union what she thinks would be the impact of the secured loan.
My credit union offers 100 percent secured loans -- secured either by shares (i.e., savings account) or a CD. I went with the CD -- securing a 1-year loan with a 1-year CD. The branch manager told me the CU wouldn't turn down a fully secured loan -- and couldn't believe banks would. My loan rate is 2 percentage points higher than the CD rate, and over the year I've made money on my account in addition to having a positive installment tradeline added to both my wife's and my credit reports. (We opted for a joint loan because I've gone through a BK and my wife's credit history is limited.) It automatically reports to all 3 CRAs, but it reports as secured. (Not sure how much of a difference that makes.) This CU also offers fully secured Visa cards without pulling a credit report. But all policies are up to the individual credit union. The other credit union I belong to pulls credit reports for fully secured MasterCards. Don't know what its policy is on fully secured loans.
I did a secure loan with my credit union and they did not pull my credit. However it showed up as a secure loan on my credit report but it was better then nothing. If I do another one I would open it for a certain amount and then pay at least 50% of it off the bat so that it's not maxxed out.
Well, a local credit union responded and said I was now a member, and I could open a savings account. Before I do it , Ill make sure the loan is automatic approval. It is at 3% higher then the savings %. Little over 2 years ago, when I first moved here, I went to a credit union that my new job had suggested, I wanted a checking account, she pulled my credit, I was denied for checking.. never had a problem with Checks.. but poor credit. She mentioned student loans... whatever... so I asked.. ok Ill take a savings,, she says sorry, I cant do that either... I could get my manager, but she will say the same thing. I left. They wouldnt let me give them my money? Absurd.
I did 2 of these secured loans since my 97 BK. They helped a lot. The loan was reported to all 3 CRA's I enjoyed chatting with you and I am now going to ask for a secured visa card if the CU has them. That will make my 3rd card.
I just took out a $1,000 secured loan at a CU last month. They did check my credit report and stated they will report as a secured loan. I asked if it was required to report as secured. "Yes we have to, it's truth in lending. We can't just put anything we want". I called another local CU to ask if they would report it as secured "No, we don't, it's nobody's business". Funny how they all have a different opinion. The rules are made up as we go along. Interestingly, my score at myfico.com was 617 the day before, and showed a 510 on the report the CU pulled up. All the info was the same. The second reason code for such a low score was ratio of balances to credit limit. My total debt showed as 281.00 and since Capital One doesn't report the credit limit on your account it showed I was maxed to my credit line. Truth in lending....I love it...
Good news with my Credit Union Plan!!!! Dear Mr. Radiohead, Loans with secured funds are all approved. We do not pull a credit report when doing a share secured loan. We report our loans to Experian, Equifax, and Trans Union credit reporting agencies. You must complete the opening of your account by returning all the forms necessary along with a clear copy of your driver's license and a minimum deposit of $5.00 before anything can be done on this account. If you have any further questions, please contact our Loan Center.......
The golden1 in california will do cd secured loans without pulling a credit report. They report to all bureaus and you can apply online..... Sam
I agree George!! And what was up witht he company that wouldnt let me open a savings account two years ago?? fools!
Somebody said that B of A "PULLS" a "HARD" for a savings account... Next time I go home to CALIFORNIA, I got my $10,000 ready to go... "I need to open a savings account" "We need to PULL a HARD" "I DON'T THINK SO...ME AND MY $10,000 ARE TAKING A WALK BUH-BYE"
I am looking at my membership agreement form,a nd it says... For Credit Union Use Only Chez systems approved: Yes NO Comments: ChxSys I '87 TX NR, NR ... neither yes or no are circled, anyone have any idea what these comments mean?
Ok, just found out that my college has a credit union I can join too. I think this may be my best route.. I say 3 credit union loans.. I don't think I can beat it, 3 more postive tradelines at 3% interest??? SWEET.
Radiohead..the NR means No Record of you was found in Chexsystems when they checked it to see if you had a history of bouncing checks...a good thing : )
Cool! Finally something good shows up for me! I wonder what those other notations mean? And why are they running it on a savings account? A guy can never get by without something beiong pulled
