Re: Secured Loan
11-14-2012 05:59 PM
I'm not a fan of getting credit in the hopes that it will improve credit scores. I am a fan, however, of getting credit that is needed (the ability of float purchases for 30 days, needing a K loan for home repairs) and that will, in addition to the need, help credit.
Secured Credit Cards are one thing. Secured loans are something entirely different and something that I would never do nor recommend.
My advice would be stay with your two secured CCs. Maybe try for a 3rd cc -- an UNsecured CC, perhaps?
Could you elaborate on the above? Isn't a secured credit card a secured loan?
No, it isn't.
Secured CCs are revolving accounts, and Secured Loans are installments.
Secured CCs can offer rewards. Secured loans, at best, offer offer compounding interest.
Secured CCs can have a CL that you can max out on every month (not advisable tho) and can be Increased in CL, whereas Secured loans are a set amount of borrowed dollars.
Thanks for the clarification. So, in your opnion I would be better served by increasing the credit limit on my secured card with the cash I was going to use for the secured loan?