Secured Personal Loan or Secured Credit card

[SunnySideUp32]

While I'm cleaning up my report, I need to add another positive trade line. I currently have one Wells Fargo credit card that just unsecured. Not sure if I will get a CLI too, fingers crossed! In the meantime, which will help my credit score more, a secured credit card or loan? For the credit card, I'll start it at $1500 and only put on what I will pay in full. Other than the annual fee, I'm not letting them make a cent in interest. If I do the loan, I'll secure it at $3000, then immediately pay $2500 back plus the origination fee, then slowly pay the rest back to keep it opened longer. That way, the interest won't be insane.

 

What do you think?

[hrguy]

Installment loans are not a big helper, but not a drag either.

 

Do a 2-fer if you need 2 positive tradelines.

 

Take out a secured loan, and use the loan to secure the card - 3K loan secures a 3K card, and you only put out 3K.

[Occam]

Installment loans are not a big helper, but not a drag either.

 

Do a 2-fer if you need 2 positive tradelines.

 

Take out a secured loan, and use the loan to secure the card - 3K loan secures a 3K card, and you only put out 3K.

+1 Excellent suggestion!

 

If you only do 1, a cc is better than an installment. But both is even better.

[hrguy]

Yup, the CC is the best, but if you want or need both; go that route. I did it with both CU's in my signature...in hindsight I really did not need the installments since I have student loans, but it helps with the count of post-bk tradelines paid as agreed so it still helped me in a sense.

[cashnocredit]

Yup, the CC is the best, but if you want or need both; go that route. I did it with both CU's in my signature...in hindsight I really did not need the installments since I have student loans, but it helps with the count of post-bk tradelines paid as agreed so it still helped me in a sense.

 

Opening 2 secured cards was the first thing I did and it worked out well. Your second and to a somewhat lesser degree your third CC will immediately help your credit score.

[hrguy]

 

Yup, the CC is the best, but if you want or need both; go that route. I did it with both CU's in my signature...in hindsight I really did not need the installments since I have student loans, but it helps with the count of post-bk tradelines paid as agreed so it still helped me in a sense.

 

Opening 2 secured cards was the first thing I did and it worked out well. Your second and to a somewhat lesser degree your third CC will immediately help your credit score.

+1, score at first secured approval was 489, six months later, score was 644 when myfico alerted me that the 3rd card reported.

[SunnySideUp32]

Installment loans are not a big helper, but not a drag either.

 

Do a 2-fer if you need 2 positive tradelines.

 

Take out a secured loan, and use the loan to secure the card - 3K loan secures a 3K card, and you only put out 3K.

Excellent idea!

[SunnySideUp32]

Thanks everyone. I got some accounts to open tomorrow . I will report which ones I get

[hrguy]

Thanks everyone. I got some accounts to open tomorrow . I will report which ones I get

What did you get?

[SunnySideUp32]

 

 

Thanks everyone. I got some accounts to open tomorrow . I will report which ones I get

What did you get?

US Bank secured credit card for $500. Haven't went to Wells Fargo yet to get the loan. I'm going hopefully in the morning to get a $3000 loan and as soon as they transfer me the funds, I'm paying $2500 back plus the fee, then I'll open another secured account with a $1000. Haven't decided on a bank yet. No CapOne. So by next week, I'll have 1 unsecured credit card, 2 secured credit cards and 1 secured installment loan. Then all I'll need is a department store card. That should be enough of a diversified portfolio to help my score over time.

 

What score did you have when you were approved for Apple Financing?

Edited May 25, 2013 by SunnySideUp32