Line of credit...

[Anonymous]

So after a friend and I were talking this afternoon. She had a thought that maybe if I got a line of credit with collateral (some loan) with a local credit union, that this may be a good way to raise my credit score. My credit score is not dreadful, but its not good either. I just want something to help raise me score alittle. Is this a good idea, or will it hurt me more? Apply for credit cards just seem like it isnt working, they wont approve me. And I dont wanna keep appling and get turned down.

[johnsj21]

Even with collateral getting a personal loan may be difficult if you can't even get approved for a CC.  I would highly suggest applying for a secured CC if you are a member of a credit union or if your bank offers secured credit cards.  Also, an installement loan isn't going to help your score as much as paying on time and PIF on a CC for 12 months.

When you say your score isn't dreadful what exactly does that mean?  Do you have a very limited credit history?  Do you have alot of baddies that are leading to all the declines? 

We need more details to help you out

[Anonymous]

Well my credit score is 585. I have one medical bill that went to collection which is almost paid off, and a capital cc which is not mine, I wasnt even old enough to get a cc when this account was opened l like 5 years ago.  And one charter com. bill that is like $400 that a roommate wont pay for. (maybe I should call them and seattle it with charter.

I only have a macys cc and its not even maxed out and I pay on time every month more then the amount due.

[tullz85]

Fix your negative credit aspects before you start new credit. That's what I'd recommend. And taking out an installment loan barely helps your score. It only helps to add to your mix of credit. So if you have a car loan or anything else out, I wouldn't waste your time on a personal loan (which is an installment loan).