After reading much about the whole secured loan (by savings or CD concept), I have decided to start off with 2 loans (and add more later if needed and once I see how this helps/hurts scores) I joined one credit union and one community bank Friday. They have agreed to not pull inquiries. OK, credit union A I am thinking of taking $500 cash and placing it into a CD. The yield of the CD is 2.5%, and interest on secured CD loans is 4.5%. I cannot decide if I should do a one or two year term on this one. Bank A I plan to put that $500 cash into a savings account and the yield is 1.5%, the interest is 2% above it. I will probably do a one year on this one. My intent is to keep the $500 in reserve to pay the first installments of the loan, and not touch any of the $1000 put away. I think this is manageable and should not murder my car loan chances (which is why I might do 2 years loan terms?) If anyone has ideas, experiences, please tell me. I'm a novice at this but if it'll help, I'm doing it!
