Secured Loans

Discussion in 'Credit Talk' started by Dustin, Jan 26, 2001.

  1. Dustin

    Dustin Well-Known Member

    I am going to take out a secured loan from my credit union using part of my tax return, and then use that money to help purchase a car. Will a $1000 secured loan help reestablish my credit, if all payments are made on time? Not looking for any miracles, just to boost my score, and hopefully help rebuild my credit so I can get some better offers/interest rates in the future...
    Does it make a BIG difference, or just a small one in my FICO score?
    Thanks for all your help!! : )

  2. roni

    roni Well-Known Member

    RE: Secured Loans?

    Gee, I never heard of anyone doing that.

  3. Dustin

    Dustin Well-Known Member

    RE: Secured Loans?

    I called them and got the OK for it and everything (for $1000), and am probably going to do it, I am just wondering if it will help my credit out very much (enough to cover the interest rate)...

  4. roni

    roni Well-Known Member

    RE: Secured Loans?

    I was being a bit sarcastic. I posted last weekend about doing this credit rebuilding technique. I have done it. I used $1,000. It is easy to do. I recommend it. It will help your score. No one can tell you exactly how much. Pay it over 12 months.

  5. sam

    sam Well-Known Member

    Possibly. probably.

    While it will help your credit out. Keep in mind past poor credit like 90+,charge off and collections are AUTOMATIC DECLINES for all prime card offers.

    You could have a zillion of these loans, but the one big baddy will equal === DECLINE.

    so with that in mind, yes it will look good to rebuild credit. But don't expect any reasonable treatment until all your baddies are gone :)
  6. Dustin

    Dustin Well-Known Member

    RE: Possibly. probably.

    Thanks for the info! : ) Baddies are on the way off, anyway, thanks to this board!!

    Roni > > I must have missed your post, I try to read as many as I can. Sorry....

  7. Angela

    Angela Guest

    A year from now, the paid back $1,000 loan will be a plus on your credit. But I read someplace that you should not pay it off too early. Somebody here said that if you pay a loan off too early it becomes "unrated" instead of "paid in full, never late".

    I don't know how the $1,000 loan will affect the car loan, if at all. Maybe the CU can do a soft inquiry since the loan is basically risk free.

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