I decided to reinstate my membership with junum after canceling it back in feb. I just dont have the time to put into disputing inquires trans, experian and equifax. and negative stuff on my experian. Im just going to let junum do it for me and im sending off my credit reports tomorrow. Wish me luck In the mean time: Im going to do a bank loan plan that takes about 30 days to complete with 100.00. Its the plan were you use 3 banks, 3 savings accounts, and 3 secured loans to build your credit in around 30 days. Im only doing it to get some loan tradelines on my report. In august or september ill do it again with 1000. I now have these credit cards: Citi drivers edge platinum 2500 limit Click citi platinum 1000 limit Citi Dividend platinum 900 limit GM card 1500 limit Household card 1500 limit capital one gold 2700 limit providian classic 200 limit And, these store charges: Spiegel charge 400 limit friedmans jewelers charge 500 limit Lerner NY and Company charge 250 limit psugirl
Hi PSUgirl!! You are doing great with your credit. Hey, do me a favor - Let us know what happens, as they happen, with your "30 day bank loan strategy". This interests me as I have some positive student loans dropping off my reports this year and I am thinking once again about doing one or more secured installment loans via the 5 credit unions I belong to. I only have 2 or 3 negatives on each report but I like to keep them counterbalanced by 28 or so good tradelines ( open and closed). Good luck with Junum. I trust you will keep us posted. I was a very happy member from October to May. I may rejoin later on' Thanks - Jim
It does work if done properly. A lot of credit gurus reccomend using this technique. One thing that they never point out is "Stacking:. This is a term used in the loan industry in regards to credit reports that have multiple loans for the same amount, that were incurred around the same time. I have done it myself with about five banks now. Most lendors will insist on a minimuim amount for the loan ranging form 1000 to 2000 dollars. The trick is to get different amounts financed. Dont go out and get three loans for 1000dollars. This is to obvious. Dont use finance companies. They dont seem to improve FICO scoring at all. They may even negatively effect the score. Lendors dont like them and consider them bottom feeders...They would consider you a high risk...Some of them reccomend paying the loans off consecutively within a 30 day period. Well, this isnt always advantagous for several reasons..First, it does not show a history of repayment. It leads to question of income also. Does your income justify your repaying of all these loans in such a short period of time. Second, there may be huge penalties for early payoff. Make sure that the institution you are using waves the fees for early payoff penalties. These can be steep in the 150 dollar range. Many credit unions will allow members financing with no early Payoff penalties, be careful!!! Secured loans will build your score over time. But you dont want to make yourself look like a credit risk in the mean time. I have been doing this to build relationships with different banks, while giving myself the flexibility of walking into any of them and getting a 10,000 dollar loan on my signature no collateral. It hasnt been easy and I dont know what the ceiling is. I got stuck at 5,000 dollars for quite a while... Good luck
I'm going to start using the 100.00 method. heres my plan: 1. with 100.00, go to bank 1 2. ask what cra do they report to 3. open a savings account for no less than 100.00 4. wait 3 days 5. go back to bank 1 6. ask for a 100.00 loan offering your savings account as collateral. 7. take the 100.00 loan to bank 2 8. follow the same procedure. Note: ask for a loan that has a 6-12 month payment history, with no penilties for early pay off. 9. after going to bank 3, wait 2 days, then make the 1st payment on each loan. 10. wait one full week 11. send second payment in 12. wait another week and repeat for 3rd payment. Note:Each time a payment is made it will unfrozen that equal amount in each savings account. You are then able to withdrawal that money for your next payment I think it sounds like a good idea! psugirl
Its a good idea. I just dont know of that many lendors that will let you borrow 100 dollars. Its a matter of paperwork vs profit. See if you can borrow a larger amount from a relative or friend who wouldnt mind parting with it for a six month/year period. Please understand that some lendors wont even report loans that are payed of in a short time. You would probably have to get them to insert the information if this happens. I wish you the best of luck!!
GEORGE< Thank you for reminding me, that any loan under 1000 dollars does not build or boost your credit in any way. For some reason the Fico model only recognizes loans of a $1000 or more. This is a very important thing to consider...
Not that I am criticizing you, but how do you know what limit will/won't effect your FICO credit model?...I would think that a loan of $100 would be too small to consider an "effective" loan, but how do you know it is >=$1000.00? Just curious, -Dave
Dave, Good question. I was told this by one of the Big Shots at my bank. What got me on the subject was a book called triple AAA credit by a guy named Goldstein. He stated in his book that only loans over a 1000 would be considered as a + on someones credit history. I thought that some of his info was dated, especially since credit scoring had been the predominant factor of granting credit. I did some searches on the FICO model and read all kinds of crazy things about people had actually tested theories out... When I first started taken out personal loans for the purpose of building credit, I would ask all kinds of questions to my banker. I also learned it from first hand experience, on my last car loan. It would be nice to get Fair Isaac to admit to it. That would make it even more believable. Personal experience would be my best answer....This whole FICO thing is a scam in my book...The flipside is that I havent seen someone come up with a better system. If I had a brain I might try to attempt it. Allthough the statistical math side of it would kill my puny mind...
Your right, im going to do it with 1000. It would not only allow me to strengthen my credit but also allow me to to strengthen the amount of credit and loan that i will be able to borrow in the furture. Ill post on how im doing with it when i start in the next week or two. psugirl
