01-07-2013 11:07 PM
I'm new to the credit game and I'm in the process of getting all of my details for my history as of now but I know it's not a good picture so far. What I am curious to know is using a company like "Sun Loan" a good idea to build a recent credit history. It's basically one of those places that offers high interest small personal loans, I believe it would be reported as an installment loan even though the amount is very low and I fully understand I'm going to pay for the privilege of doing this. I'm aware of going the secured card route and I'm almost certainly going to go that route however I'd like to keep my HP's to a minimum and I didn't realize it was such an issue to have that on my CR and I have recently done a few and one of them was from this Sun Loan company so I thought maybe I should just take advantage of the HP and just do a small loan.
My other issue is this, is having something like this on my CR going to look bad in the future if I actually take advantage of this very high interest loan to other companies? I keep hearing about how people say it wont matter because at the end of the day its history etc but then people bring up the good point of an actual person looking at it and seeing it and thinking "risk." I have to admit, if I was looking at a CR and saw that, I would think the same thing too.
Another avenue I'm going to try and use at one point I did have a small unsecured CC through a local bank, after the recession in 07 I lost my job and wasn't able to continue to make my payments and eventually they closed that account and I ended up paying it off entirely, I was thinking about possibly going into the bank and talking to someone about seeing if they would give me another chance if I would start a secured card with them with the condition that they at least backdate my new secured card to the date of my old one. Any thoughts?
01-07-2013 11:21 PM
I would stay clear of this. Just me personally. High interest rate, doesn't look good on your CR and a secured revolv would do so much more. Installment loans aren't scored nearly as high.