Credit Card Center Advertiser Disclosure

Valued Contributor
Posts: 1,612
Registered: ‎08-30-2011
0 Kudos

Re: Rebuilding Credit

nicholasyud wrote:

You can't remove all the baddies.  But you can build the goodies   My suggestions, in addition to your GW, PFD, repair work is:


1.  Establish a savings account with a credit union that offers secured loans (make sure rate is not more than 3% above the savings rate) and secured credit cards.

2.  Deposit $500 to $1000 into a savings account.

3.  Take out a "secured" personal loan.  This is a good addition to mix as an installment loan.

4.  When you get the loan check (the money you borrow), deposit it back into savings.

5.  You now have doubled your savings balance (example:  you deposited $1000, then borrowed $1000 which you deposited into savings giving you $2000).  The amount of interest you collect on $2000 should be equal to or higher than the interest they charge you for the loan on $ essentially you are not out (of pocket) any cost to build your credit with this loan.

6.  Ask for a secured credit card.  If they won't approve initially, ask again in 6 months.

7.  Once you obtain the secured credit card, only use it for items you PIF each month (don't accrue interest)

8.  Pay off the loan at 12 months.

9.  At 12 months ask to unsecure the card.

10.  You have established to great credit references and credit TL's and built a relationship with a solid credit union.

11.  During the course of the year above, continue working on the repair side of your credit.

12.  You may also obtain other builder card such as CapOne or Orchard to add an addition TL and CL.

13.  After you pay off the loan to the credit union, continue to make regular deposits to saving, just like you were still paying the loan off.  This is a financial habit that you need to continue, and it gives you your emergency fund and savings that protect against unforseen events which can take you by surprise (and hurt your credit if you are short on cash).

+1 ! ! !   THIS is great advice ! ! !  And can be applied to so many different situations where one is trying to grow their credit.



EX = 849 EQ = 850 TU = 850 as of 07/2017
Retired and Retiring Cards!

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.