Secured Loans

[John]

I'm building my credit and sort of hit a wall. I need more trade lines and revolving accounts, but don't have the credit history to get any.

However I do have some money sitting in savings. I've heard that you can get a loan against your own money and pay it back at a really reasonable interest rate (3% give or take). Is anyone familiar with these sort of loans?

[Spelunking]

I'm not sure I understand this. Say you have $5000 in the bank, you get a secured loan against your $5000, do you technically now have $10,000 available, or is the $5000 that was used to secure the loan no longer available for use, until you pay back the loan?

[BAMF]

I know you can take out loans against things like...a VUL plan...but I have absolutely no idea what you're talking about with this...

[John]

I'm not sure I understand this. Say you have $5000 in the bank, you get a secured loan against your $5000, do you technically now have $10,000 available, or is the $5000 that was used to secure the loan no longer available for use, until you pay back the loan?

as i understand it, you'd be securing the loan with your own money. So if you had 5k, you would have 5k.

[Spelunking]

So at that point it's only going to be beneficial to your credit, as your staying at the same dollar amount, there really isn't a "loan".

[John]

So at that point it's only going to be beneficial to your credit, as your staying at the same dollar amount, there really isn't a "loan".

precisely my goal, building my credit

[Spelunking]

so how do you have to pay it, is there a penalty for early pay off?

[John]

well thats kind of what I'm looking to discover here. Maybe I should ask my Dad since he just did one. As far as I know, it'd be just like any other secured loan (like an auto).

[Penis]

John I tell most of my credit client to do the secured loans. What the credit repair company does is they tell their clients to go to GTE fed credit union and open a secured loan for 21 days. Open it with atleast 500 bucks and close it just after the 3 week period. That will boost your scores and stay on your credit as a good liability for a while. The guy who ownes beacon did a few secured loans totaling over 50k in a month and I literally saw his scores go up over 800 from low 700's in less than 2 months. Im not saying that will work for everyone but it does work for most. I have done this aswell.

Another way to build credit is to have someone with good credit activate you on one of their credit cards and bam you have all of their history on your credit. But you have to get on someones credit card that has good credit. Just say to them that you want their history and when they mail a card for you with your name on it you don't even want it, you just want the history.

[TNathe]

that sharing credit thing is interesting. i've never heard that before. How can you get ALL their credit history on your credit report by doing that? And by doing so do they get all of your bad history?

[Joe]

that sharing credit thing is interesting. i've never heard that before. How can you get ALL their credit history on your credit report by doing that? And by doing so do they get all of your bad history?

No. The "bad history" person doesn't have history with that particular account.

It's the history from that ONE account that will show up when they are added.

[John]

No. The "bad history" person doesn't have history with that particular account.

It's the history from that ONE account that will show up when they are added.

correct. I'm trying to get my sister to do this for me as well

[Spelunking]

you don't get all their history, you get the history that they have on that account. Since you are only being placed on the account, you're information does not transfer to her

sorry, you guys already had it covered.

[Penis]

you don't get all their history, you get the history that they have on that account. Since you are only being placed on the account, you're information does not transfer to her

sorry, you guys already had it covered.



I did not explain my post enough. I did mean you only get all their history on that account.