Whats Better?

[shep85037]

Hi guys I am in the process of rebuilding my credit and I was going to do a secured loan through my credit union. 

To my understanding I give them $1000.00 and they give me a loan for 1000.00 and I pay it offin a year.

Another option is to get an installment loan where I buy furniture or something to that degree and pay that off in a year.

So my question is what type of loan looks better on your credit report as far as getting a higher fico score the installment loan or the secured loan.

Hope this makes sense, I am up for any advice on this thank you very much.

[user5387]

If both of these loans report, and they report as installment, then I don't see any difference.

However, I would double-check both of these items -- (1) if they report, and (2) how they report.

I expect the secured loan would have a much lower APR, but this is worth checking also.

[shep85037]

Thanks for the response.

[notfancy]

Additionally, I'd be concerned with the furniture loan depending on where it comes from. I forgot what the loan gets termed as on a credit report, but I've read reports of it showing up as basically a type of loan you can only get because you don't qualify for better. I hope someone here can find the word for me that I'm looking for.