My CS is around low 500, to improve it I would like to put $500 in the bank and get a loan against it, then go to another bank and put $300 in the bank and get a loan against it. Pay both on time and pay them off early. I only have charge offs on my cr. would this help raise my score and how much? Thanks
Not sure but I think installment loans aren't as good for your score as revolving accounts. It would probably be better scorewise to use the $500 to get a secured credit card. Kim
I don't think anyone knows how much a credit card will help since FICO is impossible to predict. It WILL help you though in the long run. If you have the money to do it I recommend it. My personal preference of course is Capital One because Mr. Cooke has really helped me rebuild credit. If you use the card wisely, maintain a low balance, make more than the minium monthly payment, you will be unsecured and getting line increases before you know it. Kim
Getting a credit card is a good idea, revolving credit is a better predictor than installment therefore revolving weighs heavier (heard that from another member, can't remember who though, sorry). It will help, however, having any derog accounts on your reports are hurting your score more than the credit card is helping (at least at this point with having the negative accounts reporting). Once those derogs are gone, your scores will climb, and c.c.'s will come easy.
