I currently have no open tradelines which is doing nothing to increase my credit scores. I'm trying to rebuild my credit / increase credit scores and I looked into an auto loan and/or secured credit card to rebuild.
I was approved by my credit union for an auto loan but only up to 70% LTV and my rate was high so I decided to decline that route. Money out of pocket plus high rates may not justify an opportunity to drastically improve my scores.
The next option to rebuild my credit is a secured credit card... My question is, will one have a more positive impact than the other provided it's paid on time over the course of 12 months? If paying on time on a secured credit card (then graduating to an unsecured card) has the same positive impact as an installment loan, then I don't need to take out a car loan just to rebuild my credit. Sure I'd like to have a newer car but I don't need one and IF paying on time on a secured card will have the same positive impact on my scores then it makes more sense to go that route.
If I went the car payment route, I'd aim for a manageable $250/month.
If I went the secured credit card route, I'd deposit $300, use about half and pay off all but $20 each month to retain a balance.
Any input appreciated. Thank you.
