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Secured Loan?

Regular Contributor

Secured Loan?

What are everyone's thoughts of doing a secured loan via a bank with something as collateral (car, boat, etc)? I've seen posts about them and was thinking about doing something like that to add as a TL to help raise scores  so it shows as an installment loan.

2 REPLIES
Valued Contributor

Re: Secured Loan?

Try for a secured loan via a bank or cu. Usually a small amount they put the money in a CD and you make monthly payments also u need to have at least 2 cc reporting for best outcome with scores


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Established Contributor

Re: Secured Loan?


FLAJenn wrote:

What are everyone's thoughts of doing a secured loan via a bank with something as collateral (car, boat, etc)? I've seen posts about them and was thinking about doing something like that to add as a TL to help raise scores  so it shows as an installment loan.


This might be what they refer to as a Title Loan.  Unlike a finance loan which is automatically secured with the object you are fianancing the purchase of.  A secured loan seems to usually be secured with upfront money you give the bank and they put it in a CD and you get back your deposit once the loan is PIF.

 

Maybe a personal loan is better fit?  Personal loan is they just give you money and you don't put up collateral or a deposit.  Tho, i'd be willing to bet you'd get better rates with a title loan.

 

Anyways, I would actually not recommend getting any sort of loan.  I am not a fan of getting credit to get credit or in the hopes that a new or different kind of TL will have some effect on your CRs.

 

Now, if you actually need the money like for medical bills or house repairs, then I am a fan of trying to get approved for some type of a loan -- which just so happens it may also help your credit.