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Please help, buying car soon

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Anonymous
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Please help, buying car soon

I need to know if a Share Secured Loan is worth my time and if it will improve my score no matter how I pay it off. Does anyone know? Please help. I have had a credit card for 1 year. I applied for a used car loan at one of my banks. They told me my score was 716. (Now that I inquired it might have lowered because of this). Then they denied me because I don't have enough history. I want to buy a car. I have enough money to buy in cash. But would like to finance it purely to improve my credit... to show that I can handle a loan, make payments and have a mixture of more than just cards. I called my credit union and they said that I can absolutely put what I want to borrow into a "share secured account", I'll earn roughly 1% interest and I can borrow against my savings and pay it off in 1 year at a rate 3% above my savings interest rate. At the end of 1 year should I choose to I could refinance and do a longer loan if I wanted to. Here's my questions: how much will a "Share Secured Loan" improve my credit? and will it do any good if I just pay it off in a couple of months even if I have a year. There's no pre-payment penalty. If you had the money in your account anyway, what would be the point of drawing it out if you have it once you got the 'credit' for a 1 year loan. Will the credit score people know how fast I paid it off? Or maybe I should just pay 90% in the first month and stretch the last 10% over 10 or 11 payments.
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Tuscani
Moderator Emeritus

Re: Please help, buying car soon

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