Personal loan ?

[Anonymous]

Hi guys,

I'm looking for some ways to improve my credit score... one of them, as we know it, is to have different 'kind' of credits. I have 2 credit cards already with low utilisation (can't get any more cards since I'm in Canada and rules are somewhat differents). I have no auto loan and no mortgage.

My credit union would be willing to give me a personal loan of 3K$ that I could pay over 24 months. The loan would be secured with my 401K retirement money.

Do you think this could help me raise my score ?

I'm looking to buy a car in the next 9-12 months so a better score would probably help me. I'm looking for a new home (mortage) in about 2 years, also, so credit score is important.

Thoughts ?

(Sorry about bad english)

[Anonymous]

I suggest that you take the personal loan with caution. Its going to increase your debt to income ratio but 6 months of consistent payments will increase your score.

[Anonymous]

I don't think my dept to income ratio is really high.

I make 60k$ / year and have two credit cards with a total of 2K$ (10% utilisation max)

No other dept.

[Tuscani]

I am curious about the Canadian rules and CCs. Do tell.

[Anonymous]

"I am curious about the Canadian rules and CCs. Do tell. "

Regarding credit cards:

In my province, there is only ONE secured card available.

We have MUCH LESS gas cards, store cards, and they seem to be AS HARD to get as regular credit cards.

No Capital ONE, hooter's club, etc.. which are easy to get for you guys.

AMEX is unavailable in store 90% of the time. So pretty useless card for use, which leave us only with VISA/MC.

So with a score of 640 I was only able to get ONE store card and ONE secured card. Nothing to do, not enough credit card choices.

Regarding regular bills:

(edited) Phone company, cable TV company, and Electricity companies do NOT report on ANY credit bureau. So paying these bills on time do NOTHING to our scores. The same is true about renting a house/appartement --> no report on ANY credit bureau.

Message Edited by dopefish on 06-18-2007 07:12 AM

[Anonymous]

Anyone ?

[Anonymous]

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@Anonymous wrote:

Anyone ?

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Installment loans have little affect on scores unless you are LATE.
Make all you payments on time, keep your utilization down, try to slowly add another trade line, bug them for CLI's.

[Anonymous]

Thanks Timothy.

My payment are always on time for the last 2 years, my utilization is always below 10% and I can't get any credit limit increase for now, or other credit cards.

That's why I'm looking for other solutions!

[Cory]

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dopefish wrote:

Thanks Timothy.

My payment are always on time for the last 2 years, my utilization is always below 10% and I can't get any credit limit increase for now, or other credit cards.

That's why I'm looking for other solutions!

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I got a personal loan from my Credit Union and it helped my score a lot. I say go for it.

Cory