This or that? Q

[Anonymous]

Just stopped in, and am so impressed with this section of the forum.  Looking for advice on my next step,

My credit is not great, scores need to be updated but the last reported are in my sig.  A paid off mortgage, with lots lof lates from 2010, the property was sold.  Student loans, sold and resold, lates from 2010.  One student loan is showing as a collection, which will be finished in April.   .   One 30 day in the past year.   Currently:  One charge off from USAA for 1500 due to fall of in November with a DOFD from 2009.   One pubic record on EQ,  paid judgement from 2014, which may be removed from an atty, unsure, amount $1500.  The judgement is only apparent on Equifax.     

Cards I have:  Cap1 plat, 400 20 months old, Cap1 QS one, just increased to $1500 (from 500) 5 months old, a VS ( comenity) store card $500, 5 months old, a CC from my local CU for $500.

All balances are close to zero.

My goal is to buy a duplex in my expensive city within the next 18 months.

My question is, do you think it would be best to:

A) get a Discover card, most likely reporting as secured, with $500

or

B) Take the $500 and get a small secured installment loan?

I have no active loans, my car was paid with cash,  and the past mortgage loan, (with lates from 2009 2010), is marked as paid, with a zero balance).   

[manyquestions]

I think adding another card may lower your score a little initialy due to adding an inquiry and a new account ding to your AAoA. Adding the installment loan will also be a new account ding but you might get a net gain 10 to 20 points after it is paid down ~91%.  Since your time horizon is 18 months out in the future, you might want to consider doing both if you are wanting to get in with Discover card. 

[Anonymous]

Thank you Manyquestions, very much appreciated.

[Anonymous]

Do both coz you're looking at buying in 18 months which is plenty of time to age the new accounts.