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Dollar Loan to Boost your Credit Score?!

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RedHeadGirlLA
New Contributor

Dollar Loan to Boost your Credit Score?!

I have been reading and listening to podcasts on repairing credit.  I heard a suggestion to get a low amount payday loan from Dollar Loan.  (e.g $300 bucks) Then pay it off in the next three months.  Of course, you will be paying an extra 20 a month in fees but it will boost your credit score.  Dollar Loan is connect to a major back and it’s considered a revolving loan.  This will bulk up your credit report and help your score. 

 

I did some research and I’m finding conflicting information.  Has anyone else heard this or have any thoughts.  Would love some suggestions. 

Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Dollar Loan to Boost your Credit Score?!

I think you would be better off getting with a credit union and doing a secured loan than getting involved in any payday loan type of establishment.

Message 2 of 8
Anonymous
Not applicable

Re: Dollar Loan to Boost your Credit Score?!

My personal feeling is that payday loans are never a good idea. If all you want is bulking up, go do the sct and get a couple of store cards if you don't have the money to secure a loan. 

Message 3 of 8
RedHeadGirlLA
New Contributor

Re: Dollar Loan to Boost your Credit Score?!

Thank you for the advice!!!

Message 4 of 8
titanofold
Established Contributor

Re: Dollar Loan to Boost your Credit Score?!

Payday loans are evil. Do not use them.

 

Get a store card or go to a credit union with which you have a relationship. If you can't do either of those, get an OpenSky Visa.

 

If you don't have the money to do a secured CC or the assets to secure a personal loan, save up the money to do so no matter how long it takes.

 

A payday loan will get you into a terrible, vicious cycle that's difficult to get back out of. DO NOT USE THEM.

 

FOR SERIOUS.

Scores2013-09-21Current
Equifax630 (LP)755 (CK)/749 (Quizzle)
Experian640 (FCR)FICO 707 (Amex)
TransUnion588 (CK)FICO 754 (Barclaycard)
Message 5 of 8
Anonymous
Not applicable

Re: Dollar Loan to Boost your Credit Score?!

Best suggestion I have read about installment loans to boost scores:

 

Join the State Department Federal Credit Union - SDFCU - and make a 500 secured loan with them.  Check the 'who can join' link.  I was able to join in less than 15 minutes and made a share deposit of 20 bucks.

 

Deposit 500 with them to use as collateral and borrow 500 for 36 months and the interest will be 3.9 I think.  The payments will be 14 and change per month.  You can use the 500 borrowed to fund an account to do auto pay.  This would give you 3 years of positive reporting and when paid off, get the 500 back.  So, 3 years of reporting, close it, and get another 10 years reporting from a positive TL. 

 

I joined and have a 20 shared account with no HP.  I am heading there to get the secured loan as soon as I can get the funds back from a secured card I have with another company.

 

HTH

 

Message 6 of 8
Anonymous
Not applicable

Re: Dollar Loan to Boost your Credit Score?!


@Anonymous wrote:

Best suggestion I have read about installment loans to boost scores:

 

Join the State Department Federal Credit Union - SDFCU - and make a 500 secured loan with them.  Check the 'who can join' link.  I was able to join in less than 15 minutes and made a share deposit of 20 bucks.

 

Deposit 500 with them to use as collateral and borrow 500 for 36 months and the interest will be 3.9 I think.  The payments will be 14 and change per month.  You can use the 500 borrowed to fund an account to do auto pay.  This would give you 3 years of positive reporting and when paid off, get the 500 back.  So, 3 years of reporting, close it, and get another 10 years reporting from a positive TL. 

 

I joined and have a 20 shared account with no HP.  I am heading there to get the secured loan as soon as I can get the funds back from a secured card I have with another company.

 

HTH

 


Actually, you don't even have to that - when I joined they 'gave' me a buck to open my account.

Message 7 of 8
RedHeadGirlLA
New Contributor

Re: Dollar Loan to Boost your Credit Score?!

Thank you so much for the advice! 

Message 8 of 8
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