My FICO score is currently around 650. I would love to get it into the 700's. I still find it hard to obtain new credit because of my negative payment history from 4 years ago which includes a paid judgement. Outside of my student loans all my debts are paid off and I have a decent paying job. I still find it difficult to obtain new credit because of my negative payment history. Would it make any sense to take out a secured loan against part of it to help me reach my goal? Once paid off how will lenders view this kind of loan in comparison to a non-secured? I would appreciate any thoughts.
yeah I would go with a secured card over a secured loan. Try bank of America first, apply for their Visa Platium Plus first. It is an unsecured card but it's there quasi sub prime credit rebuilder. If you get denied they will offer you either their secured card or the $99/$500 and you will only get one inquiry for all them.
Thank you for the response. I actually have a credit card with Household Bank that I have used to help re-establish my credit history. I have had it for about 3 years nows. I totally agree with your suggestion with that. Between that credit card and paying off all my debt which included multiple charge offs,I have managed to gradually increase my credit score from the low 500's to where I am right now. Im just trying to get to that next level which has proven to be a challange.
I guess it wouldn't hurt to do a small secured loan of something like a $1,000 just to get a mix. Are you looking to raise your score for any particular reason besides the obvious one of having a better score, ie auto loan or a mortgage?
You said all your baddies are squared away right? With a 650 score you'll be fine in terms of obtaining a mortgage. You should now focus on getting your Debt to Income ration down as low as possible and build up some assets. You're DTI is looked upon just as much as your credit score.
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