Taking a Secured Loan for the sake of my score?

[Anonymous]

I read this great thread on this forum which focused on taking out a small secured loan

just to have it on file.. for a small score boost.

It was good for some and bad for others for many different reasons. (AAOA, current loans, HP & SP ECT)

In my case; i could afford the AAOA since i have had credit for a few months.

Also, on my credit report from TU & Credit Karma... it was said they I should have more revolving accounts..

With a score of 700 (Credit Karma), only one credit card.. and a few months of credit

Would it be a good idea to take a secured loan to have it on my file?

In combination with another secured Credit Card just because my current limit is very low.

(I do plan on getting a auto loan very soon.)

[CreditDunce]

If you are going to take out an auto loan soon, then I wouldn't get the shared secured installment loan right now.  The auto loan will count as an installment loan for your credit mix.  If you add the shared secured installment loan right before the auto loan, you score may take a dip due to the new account.  It is not a bad idea to get the shared installment loan, but either get it and wait 6 months for the auto or get it after the auto loan.

Assuming you are going to get an auto loan, another secured credit card would more beneficial right now for you.  Ideally, I would find a secured credit card that graduates (e.g. BoA) with a credit card company that you can see yourself keeping for many years.

Once you have added the car loan, second secured CC and optional shared secured CC, wait at least 6 months.  Or even better until you have 1 full year of credit history.  Then pick up a pair of unsecured CC's.  Maybe even a store CC if there is one you shop at regularly.