Secured loan from credit union?

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neptunejcw
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Secured loan from credit union?

Postby neptunejcw » Mon Jan 28, 2013 12:58 am

I recently contacted my credit union about obtaining a secured credit card & got told about a secured loan...

  1. How much can this loan possible raise my score?
  2. Is this gonna really help my score like she told me?
  3. Will it be smart to get that loan & a secured credit card at the same time? with both these reporting good on my reports, will I be looking to get a pretty good increase in my credit score?


Midori
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Postby Midori » Mon Jan 28, 2013 5:41 pm

I got turned down for a Lowe's card due to "insufficient credit history", even though my score itself was in the 800's. In my credit history, I have a paid-off mortgage; another mortgage with perfect payment history; paid-off student loans; and other such things. In all of the pages of stellar credit, though, I only had a single credit card reporting.

Will a secured loan help your number? Probably.

Will you get a credit card based on good score alone? Probably not.

Would I get a loan I didn't need? No.

Instead, I applied for some credit cards I didn't need to help build the "revolving credit" portion of my credit file.

If your credit's really badly off due to chargeoffs or bankruptcy, that's one thing. If your credit's just immature and undeveloped, or not well-rounded, that's another thing. What do you want to be able to do? In my case, I wanted to not-get-rejected-for-a-store-card, so I had to bulk up my revolving credit. If you want something different--- if you're prepping yourself for a car loan or a mortgage in the future, for example--- maybe you could figure out what they prioritize, and work on developing that aspect of your credit history.

FutureBillionaire
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Postby FutureBillionaire » Mon Jan 28, 2013 6:24 pm

Get the secured loan.

These types of loans will help boost your credit score and, more importantly, your relationship with the credit union. The credit union will grow with you. I went from a $500 credit limit on a card with them, to 20k in a few years. They are very stingy, too. A mix of loans and credit cards actually helps your score. Take out a loan to pay something that you normally would buy. Pay most of it right back. Make a few payments for 6 months to a year. You will thank yourself later.
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neptunejcw
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Postby neptunejcw » Tue Jan 29, 2013 12:26 am

Thanks I will do that. My credit is pretty undeveloped. Don't really have a history at all & yea I am prepping to try to lease a car in June. So what I'm thinking of doing is taking the loan from the credit union & getting the secured credit card from my credit union. What will be a good amount to put down for the secured credit card? The secured loan will be for a $1000 & I got up to $2000 to put down for the secured credit card. Do I really need that much on the secured card?

FutureBillionaire
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Postby FutureBillionaire » Tue Jan 29, 2013 1:30 pm

I've done secured loans, but not credit cards. I've not done a secured card, so I can only suggest that you do what you feel comfortable with. I would recommend never using more than 30% of your available credit on the card, just so you can make sure that you don't report a high balance if you can't pay it back.
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Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
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neptunejcw
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Postby neptunejcw » Tue Jan 29, 2013 1:52 pm

Thanks any other suggestions on how I can boost my score in 6 months?

FutureBillionaire
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Postby FutureBillionaire » Wed Jan 30, 2013 9:36 am

neptunejcw wrote:Thanks any other suggestions on how I can boost my score in 6months?


Pay off any collections accounts. Pay all of your bills on time.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

neptunejcw
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Location: Indiana

Postby neptunejcw » Sat Feb 02, 2013 4:55 pm

Quick question. When I get this secured loan on my savings account I already have. Lets say I have 1000 in a savings account, they will give me another 1000 am I correct? But I can't touch the 1000 I already got sitting in my savings account right?



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