Max out Secured CC or Secured Loan

[ChangeIsPossible]

I in in the rebuilding process, but have an outstanding tuition balance at University. I am looking to go to Grad school and I have to pay balance to get transcripts.
I have stock I will sell to pay balance which is $6k.

Should I sell stock and get secured loan, or should I put on secured credit card? No matter which way, I will pay $500 a month to pay balance as quickly as possible. I already have a secured card with NFCU that I would add balance to.

CC interest rate is 14.99 vs loan which is 2

[gdale6]

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@ChangeIsPossible wrote:
I in in the rebuilding process, but have an outstanding tuition balance at University. I am looking to go to Grad school and I have to pay balance to get transcripts.
I have stock I will sell to pay balance which is $6k.

Should I sell stock and get secured loan, or should I put on secured credit card? No matter which way, I will pay $500 a month to pay balance as quickly as possible. I already have a secured card with NFCU that I would add balance to.

CC interest rate is 14.99 vs loan which is 2

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2%.......

[ezdriver]

The secured cc route is fine when paying off full balance each month. Since you are financing your tuition via credit, the secured loan is the better choice because of the interest costs being so much lower.

[SunriseEarth]

A new loan would give you new account ding and shorten your AAoA, but billing it on the CC would kill your UTIL.  UTIL is weighed more heavily in FICO scores than AAoA is, so I think the loan makes more sense than the CC.

However, why not just pay the balance outright instead of incurring new debt?

[ChangeIsPossible]

I figured if I did a loan I wont be technically forking over that much cash and will motivate me to pay off the loan quicker. I am rebuilding at the current moment and would like to add a positive time line to account and to thicken file. Most of my derogs are SL late marks that I am trying to get removed.

[SunriseEarth]

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@ChangeIsPossible wrote:

I figured if I did a loan I wont be technically forking over that much cash and will motivate me to pay off the loan quicker. I am rebuilding at the current moment and would like to add a positive time line to account and to thicken file. Most of my derogs are SL late marks that I am trying to get removed.

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I read your other thread.   Since your secured cards are so new, I wouldn't even consider adding any new TLs until at least 6 months after those have opened.

I think settling on the baddies is good and you certainly want to make sure they update reporting.  GW letters would also be a great idea for anyone that took settlement but didn't do PFD.   I think you need to work on making your file thinner at this point.   If you need more credit later, I'd suggest trying the shopping cart trick once you get your scores closer to 600.  But to do that, you need to let the two new CCs and the INQs age and see if you have more luck at getting the baddies removed.

So take the money and use it to prevent yourself from taking on more debt.

[ChangeIsPossible]

I think I am going to just pay them off with the cash and not worry about file right now?