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trubliever82

Share you secure loan experience

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Yes, of course secured loans are easier to get than unsecured loans for the reason you mention.

 

In my opinion they're a waste of time and energy if they report as installment loans because installments don't help your FICO score much. Other things equal, you're much better off getting a secured credit card with your security money.

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Dang, I was looking for a GN response. :(

 

I'm less critical of message subjects because they can't be edited after you submit your post. :P

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You'd be better off getting a secured CC than a secured loan if you are trying to build your credit. With a secured loan you will be paying interest for borrowing your own money which just seems silly.

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Wouldn't the secured loan help a little if the OC has zero installment loan history?

 

Very little, yes.

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Wouldn't the secured loan help a little if the OC has zero installment loan history?

Very little, yes.

+1

 

A secured card would help much more.

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While I agree that a secured card is better in terms of helping/improving one's credit, the major difference in the two is that a secured loan does NOT require the borrower to put up the MONEY to obtain it, merely to pledge security (a car title, usually) in order to receive the loan.

 

If you need $2000 and don't have it, but do have a clear title that can be pledged, it's a viable alternative.

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While I agree that a secured card is better in terms of helping/improving one's credit, the major difference in the two is that a secured loan does NOT require the borrower to put up the MONEY to obtain it, merely to pledge security (a car title, usually) in order to receive the loan.

 

If you need $2000 and don't have it, but do have a clear title that can be pledged, it's a viable alternative.

 

I would never recommend securing a personal loan with a vehicle title, especially if the person's livelihood is dependent on the car to get to work (which is most people). A car title loan is the second-to-worst option behind a payday loan.

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Have to agree with all the above. A secured installment loan and even an unsecured installment loan will do little to nothing for your scores. Do as advised and get a secured cc.

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I got a secured loan when I was just out of high school. The reason I got it was the parents were lending me the money to buy something and they wanted me to have to learn the practice of paying payments on time. Didn't do anything for the credit.

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