Reply
Established Member
haoniukun
Posts: 43
Registered: ‎08-17-2012
0

Can a share secured loan help to build credit?

Hi,

I only have a credit history for 6 months. 2 unsecured credit cards now with total limit of $2000.

I wonder if a share secured loan help me to accumulate some credits in the next 6-7 months.

After 7 months, I may apply for a mortgage at that time.

 

Thanks for any hints in advance.

Senior Contributor
jsucool76
Posts: 3,842
Registered: ‎12-11-2011
0

Re: Can a share secured loan help to build credit?

From what I've read, you shouldn't be apping for anything within like, a year of thinking of buying a home (w/ mortgage). YMMV, but it seems to make sense to me. From what I've read share secured loans will report as a positive account, although how much it weighs on your credit us unknown to me. It would be good for varying up your types of credit though (revolving vs installment) 

 

 

;
Established Member
haoniukun
Posts: 43
Registered: ‎08-17-2012
0

Re: Can a share secured loan help to build credit?

[ Edited ]

It's a long story.

For sure I won't get the best rate.

What I can do now is just trying to get a credit rate as high as possible to get the best rate I can get.

But really thanks for your reply.

I'll keep the account for a period of time.

Established Member
haoniukun
Posts: 43
Registered: ‎08-17-2012
0

Re: Can a share secured loan help to build credit?

Thanks for all your reply.

When I applied for my mortgage, my credit score for mortgage is 722.:smileytongue:

Though not best rate, it's good enough for me with a credit history of one year and half.

Just got my house and got my chase freedom for home improvement.

Valued Member
Supawest
Posts: 30
Registered: ‎02-08-2013
0

Re: Can a share secured loan help to build credit?

Wow congrats!!


Starting score 656 EQ (Nov'12 Lender Pull)Current Score: EX 690 EQ 734 TU 709
Goal Score: 760 across (Gardening since: 03/22/2013)

New Member
dwstar79
Posts: 2
Registered: ‎03-28-2013
0

Re: Can a share secured loan help to build credit?

Hi, haoniukun I have just obtained credit recently and looking to create a credit history.
My question is what unsecured credit cards did u apply for and how did u go about it?

And am also looking to close my first mortgage loan sometime in the near future..
I Never had bad credit. DON'T need to rebuild credit.. Just need to CREATE a good credit history.
Thanks in advance
Established Member
haoniukun
Posts: 43
Registered: ‎08-17-2012
0

Re: Can a share secured loan help to build credit?

If you do not have a credit history like me, I don't think it will be a short period of time before you can have decent credit score to have a relatively low rate.

I had my first secured credit card nearly 1 year and 9 months ago.

Half a year later, I was approved a capital one credit card with low credit limit.

3 months later, I was approved for a discover more card.

I applied for the secured loan half a year before I applied for my mortgage.

I'm not sure how much the secured loan helped.

With these credit cards and loan, my credit score came to 720 when I applied for my mortgage in February.

It is nearly 1 year and 3 months for me to prepare.

If you only have a few months' credit history, I think it will be hard to be approved for a mortgage.

I also do not have any bad marks in my credit history.

According to my load officer, you need to have a credit score of 680 to be approved for a conventional loan.

I'm not sure about other loans.

New Member
dwstar79
Posts: 2
Registered: ‎03-28-2013
0

Re: Can a share secured loan help to build credit?

Thank you so much for your swift response I am in aww! of what u did and how quickly you build it up. Your approach should definitely be a model to those who are starting with credit for the first time like students and migrants to the u.s.
I have one more question your shared secured loan was it from a credit union, because I am considering a 500 shared secured loan from my Credit union at a ten month repay back period. But I want to follow your footsteps first by getting a secured credit card perhaps 2 then wait to get approved for an unsecured one.
What do you think?
And of course late payments absolutely not an option with this plan
Btw(I recently opened my first CU account nothing attached to it just yet. Just have a sitting deposit in it )

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}