Are share secured loans beneficial?

[Anonymous]

Thinking of adding a share secured loan through my local CU to add another installment loan to my profile. Will it be beneficial to me? And I know all CUs are different but what is the minimum amount needed for a secured loan like this? Do they report like a regular personal loan?

[Anonymous]

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@Anonymous wrote:
Thinking of adding a share secured loan through my local CU to add another installment loan to my profile. Will it be beneficial to me? And I know all CUs are different but what is the minimum amount needed for a secured loan like this? Do they report like a regular personal loan?

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As for Fico scoring, if you have one installment loan, that will satisfy the 'credit mix' portion of the score.

I am not aware of any additional benefit from adding more installment loans.

I do not have an auto loan right now so when I had an opportunity, I added an installment loan from a CU.  I needed the money from the loan so I took the opportunity when it was there.

The lowest amount I have heard of has been 250, and more commonly, it has been 500.

HTH

[lg8302ch]

If you have no installment loan then yes you could get a few points from having an installment loan like this. But if you already have an open installment loan then my understanding is that there is no extra benefit.  For me it would be beneficial because I only have revolving accounts and I get the negative factors listed accordingly

[takeshi74]

It's not just whether shared secured loans are beneficial.  It's not just about the item itself but one's credit profile and how the item would factor in.  As indicated above, one who does not have any installments can see a benefit to Credit Mix from adding an installment like a shared secure loan.  However, if you already have active installments then you will see little to no benefit.

Focus on addressing the issues with big impact -- e.g. the stuff at the end of your signature.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx