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Established Member
britishexpat
Posts: 28
Registered: ‎05-08-2012
0

Need some advice on what I should do for the best.

As a new comer to the US, I have been building up credit... I managed to get myself a secured CC an unsecured CC and 4 store/gas cards as pointed out in various threads and posts through this site, all is well and good with my current credit lines, all paid in full before time etc etc... Now that I have some extra cash to spare $1000 I would like to know whether or not I should take out a secured loan with my local bank as I don't have this type of repayment loan on my current file... I was refused at an earlier date an unsecured loan with the same bank based on lack of credit history and no score found etc... I am asking this question now as TU online has within the credit information section of my report, that my score is affected as I don't have any revolving payment accounts to create a score on... They state lenders like to see a variety of credit lines etc to see how well you repay each type, and this is one type I don't yet have... Only issue I have is that on credit karma's simulator I entered a new $1000 personal loan and pressed re-calculate projected score based on this and my score went down 30 points... Now I am only 2 months away from my 1st CC reaching the 6 month mark and I know that's when my true FICO score will kick into effect... I am wanting to have the best possible score I could possibly get by this date as I need to try and get finance available to set up my small business with funds needed at between $10k - $15k,  so if I was to take out this secured loan would my score in let's say at least 2 months time be higher or is it going to be a waste of time by reducing my score.... Hope this made sense..... I don't need any credit right now just need my score/file to cover all credit lines and be set up the best I can be for when the time is right to apply...

Started Credit ladder April 2012.
First Year on ladder Scores: April 2013
Walmart TU FICO 654
Equifax FICO 617
Experian FICO 639
Transunion FICO 654

Started with very low limits at 300 each.
one year in limits and some nice New Cards in wallet:
Amex Green Open Limit
Amex Gold Rewards Open Limit
Amex Dillards 1k
Chase Slate 3.5k
Lowes 1.5k
Amazon 1.5k
Walmart 1k
TexacoChevron 1k
Furniture Row 1.7k
Cap 1 newcomers 750
Cap 1 Secured 450 (kept for AAoA)
Banana Republic 800
Chase Freedom 500
14.5k in first year, plus 3.5k Cap 1 Business (18k)

current UT @ 30% will all be clear this month so expecting scores to rise to 700's.

not bad for first years credit.
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Need some advice on what I should do for the best.

Is the advice you are reading coming from a CMS like TrueCredit?

Established Member
britishexpat
Posts: 28
Registered: ‎05-08-2012
0

Re: Need some advice on what I should do for the best.

[ Edited ]

I'm not to sure but yes I think it is the same... I think my TU onine is a "vantage score" at this stage all I know is that's the info given is a guide to a better score with transunion online....it is telling me that my score is better calculated if I have different credit types i.e store credit, credit card, revolving credit, fixed repayments etc etc and a secured or unsecured loan is what I do not have right now........ regardless of that my question is, is it going to be better for me to have a loan repayment account on file/scoring system or a waste of time at this stage of building.... credit karms's simulator projects that my current score "vantage" I'm guessing here will go down by 30 points if this loan is added...

Started Credit ladder April 2012.
First Year on ladder Scores: April 2013
Walmart TU FICO 654
Equifax FICO 617
Experian FICO 639
Transunion FICO 654

Started with very low limits at 300 each.
one year in limits and some nice New Cards in wallet:
Amex Green Open Limit
Amex Gold Rewards Open Limit
Amex Dillards 1k
Chase Slate 3.5k
Lowes 1.5k
Amazon 1.5k
Walmart 1k
TexacoChevron 1k
Furniture Row 1.7k
Cap 1 newcomers 750
Cap 1 Secured 450 (kept for AAoA)
Banana Republic 800
Chase Freedom 500
14.5k in first year, plus 3.5k Cap 1 Business (18k)

current UT @ 30% will all be clear this month so expecting scores to rise to 700's.

not bad for first years credit.
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Need some advice on what I should do for the best.

I asked because I used to subscribe to TrueCredit and recall seeing the same mention when I didn't have any open loans reporting. They also provide Vantage vs. FICO scores.

 

Maybe adding a loan could help a FAKO score, but in your case, per FICO, I think your FICO score would likely drop if one is added. It is a tiny part of your credit mix and it isn't uncommon to see other posters in here hit 800 without any installment loans or mortgages reported. IMO, it isn't worth it to spend money to lose money just for a potential increase in credit score in a best scenario. I vote for a loss if added.

Established Member
britishexpat
Posts: 28
Registered: ‎05-08-2012
0

Re: Need some advice on what I should do for the best.

Thank you so much, I was under that impression myself but was not totaly sure.... i'll now just use the money to open a new cap1 business account and put the rest into a savings account with my local bank.

Started Credit ladder April 2012.
First Year on ladder Scores: April 2013
Walmart TU FICO 654
Equifax FICO 617
Experian FICO 639
Transunion FICO 654

Started with very low limits at 300 each.
one year in limits and some nice New Cards in wallet:
Amex Green Open Limit
Amex Gold Rewards Open Limit
Amex Dillards 1k
Chase Slate 3.5k
Lowes 1.5k
Amazon 1.5k
Walmart 1k
TexacoChevron 1k
Furniture Row 1.7k
Cap 1 newcomers 750
Cap 1 Secured 450 (kept for AAoA)
Banana Republic 800
Chase Freedom 500
14.5k in first year, plus 3.5k Cap 1 Business (18k)

current UT @ 30% will all be clear this month so expecting scores to rise to 700's.

not bad for first years credit.
Moderator
Revelate
Posts: 9,738
Registered: ‎12-30-2011
0

Re: Need some advice on what I should do for the best.

[ Edited ]

Dunno, depends on what the rest of your credit report looks like.

 

I was nearly a thin file, and it appears as though my FICO (EQ Beacon 5.0) took about a 20 point jump with the addition of installment loans... and that's just short-term.  I didn't read the post fully, but unless you can't afford a possible short-term negative, long-term having an installment loan on the record is almost unarguably a good thing.  The negatives associated with opening a new tradeline fade in the short to mid-term, and approaching FICO increasing really should be looked at from a perspective of longer than 2-3 years.

 

Timeslice of the tracking I do:

 

12/11: 561

1/12: 571

2/12: 595

 

The installment loans (auto and secured USAA reported in early February and the score was pulled late Feb.  Possible was the additional month on all the rest of the tradelines (still less than six months so no seasoning) and the inquiries for the accounts also having another month of age (they landed in Dec and Jan)

 

A C1 business card is likewise a new tradeline with all the same penalties as getting an installment loan.  Also a secured 100% LTV installment loan, you get the money back and could do both the installment loan and the C1 account.

 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Established Member
britishexpat
Posts: 28
Registered: ‎05-08-2012
0

Re: Need some advice on what I should do for the best.

Ok now I am getting extremely cheesed off with transunion..... vantage score what ever it is at this stage.... TU online indicated to me that I had too few accounts... ok so I go and get myself a secured cc, I have had it over 5 weeks and only today has it been updated on my file... my score has now dropped by a massive 50 points...wth is with them... not going to carry on with the membership with them nor any other monitoring site if this is the direction they give you and then reduce your score... same goes for credit karma as with them this card on their simulator showed I would have my current score increased by 5 points not minus 50.... becoming a farse trying to do the right thing here with building good score and now it is worse score than ever..???

Started Credit ladder April 2012.
First Year on ladder Scores: April 2013
Walmart TU FICO 654
Equifax FICO 617
Experian FICO 639
Transunion FICO 654

Started with very low limits at 300 each.
one year in limits and some nice New Cards in wallet:
Amex Green Open Limit
Amex Gold Rewards Open Limit
Amex Dillards 1k
Chase Slate 3.5k
Lowes 1.5k
Amazon 1.5k
Walmart 1k
TexacoChevron 1k
Furniture Row 1.7k
Cap 1 newcomers 750
Cap 1 Secured 450 (kept for AAoA)
Banana Republic 800
Chase Freedom 500
14.5k in first year, plus 3.5k Cap 1 Business (18k)

current UT @ 30% will all be clear this month so expecting scores to rise to 700's.

not bad for first years credit.
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Need some advice on what I should do for the best.

Ignore FAKOs.

Moderator
MarineVietVet
Posts: 14,914
Registered: ‎07-14-2009
0

Re: Need some advice on what I should do for the best.


llecs wrote:

Ignore FAKOs.



I agree. Ignore all FAKO's all the time every time.


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