I SPOKE WITH THE LOAN OFFICER AT MY BANK TODAY AND SHE IS WILLING TO MAKE ME A LOAN. In order to get the loan, I must place the $xxxx.xx amount in a CD buy back account/saving account. Currently, I have FICO score 601 (Equifax), 571 (Experian), and 559 (Tran Union). Should I place part of the 20K dollars that I have on deposit with the bank in a saving account or a CD to make this loan? I donâ??t need the loan from the bank at this time, but I would like to add an additional positive trade line to my CR as well as built a banking relationship for future needs. Furthermore, how will this affect my current FICO scores of 601, 572, and 559, respectively? What should I do to establish new credit?
If the bank is willing to make you a secured loan maybe it would be willing to give you a secured credit card that reports as unsecured. That way, you will get a positive tradeline without incurring as much interest because you would use the card only when you needed to and you could decide when and if you wanted to carry a balance. A satisfactory revolving account might look better to other CC companies than an installment aco****.
I've had many lenders tell me that a loan is better than a CC because it shows you can pay a set amount on time. With a CC you don't demonstrate as much consistency as with a loan. Why not do this for less $ at 2-3 banks and have several new lines.
