10-14-2008 09:46 PM
10-14-2008 10:14 PM
10-14-2008 10:37 PM
10-15-2008 09:58 AM
A lot of people are able to get a secured loan thru a credit union using a paid off auto as collateral.
Just don't spend the money....
I like to see 12 months.... but the FICO warriors here may be better at telling you how to structure
10-15-2008 10:30 AM
i wasnt talking about an auto loan. just a 12 month installment loan with something to collateralize the deal. lots of people use a paid off auto, but maybe you can think of something else for collateral.
stay away from finance companies.
10-15-2008 11:40 AM
10-15-2008 12:18 PM
The mortgage officer won't necessarily care. I think the point being made about collateral is that you said you're building your credit, and it's easier to get a secured loan than an unsecured loan.
Here's what I've learned about the impact of installment loans since I joined these forums (fora?). I'm sure the experts can weigh in as well - and you may want to post this in General Credit Issues or Building Credit.
10-15-2008 12:28 PM
10-15-2008 12:44 PM
Not being a LO, I can't speak to what would make them most comfortable, other than saying a small payment like $50 likely won't make them nervous that you might default on it or your mortgage, and won't ding your DTI much if at all.
From a strictly credit-building & score-building perspective, that loan would improve your credit mix, and that, combined with the account history and on-time payments, will reflect positively on your score.
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