topic Re: Can a share secured loan help to build credit? in General Credit Topics

Can a share secured loan help to build credit?

Anonymous — Sat, 18 Aug 2012 19:23:35 GMT

Hi,

I only have a credit history for 6 months. 2 unsecured credit cards now with total limit of $2000.

I wonder if a share secured loan help me to accumulate some credits in the next 6-7 months.

After 7 months, I may apply for a mortgage at that time.

Thanks for any hints in advance.

Re: Can a share secured loan help to build credit?

jsucool76 — Mon, 20 Aug 2012 02:06:25 GMT

From what I've read, you shouldn't be apping for anything within like, a year of thinking of buying a home (w/ mortgage). YMMV, but it seems to make sense to me. From what I've read share secured loans will report as a positive account, although how much it weighs on your credit us unknown to me. It would be good for varying up your types of credit though (revolving vs installment)

Re: Can a share secured loan help to build credit?

Anonymous — Mon, 20 Aug 2012 02:17:14 GMT

It's a long story.

For sure I won't get the best rate.

What I can do now is just trying to get a credit rate as high as possible to get the best rate I can get.

But really thanks for your reply.

I'll keep the account for a period of time.

Re: Can a share secured loan help to build credit?

Anonymous — Sun, 31 Mar 2013 02:19:24 GMT

Thanks for all your reply.

When I applied for my mortgage, my credit score for mortgage is 722.

Though not best rate, it's good enough for me with a credit history of one year and half.

Just got my house and got my chase freedom for home improvement.

Re: Can a share secured loan help to build credit?

Supawest — Sun, 31 Mar 2013 03:05:28 GMT

Wow congrats!!

Re: Can a share secured loan help to build credit?

Anonymous — Tue, 23 Jul 2013 17:11:31 GMT

Hi, haoniukun I have just obtained credit recently and looking to create a credit history.
My question is what unsecured credit cards did u apply for and how did u go about it?

And am also looking to close my first mortgage loan sometime in the near future..
I Never had bad credit. DON'T need to rebuild credit.. Just need to CREATE a good credit history.
Thanks in advance

Re: Can a share secured loan help to build credit?

Anonymous — Tue, 23 Jul 2013 18:23:29 GMT

If you do not have a credit history like me, I don't think it will be a short period of time before you can have decent credit score to have a relatively low rate.

I had my first secured credit card nearly 1 year and 9 months ago.

Half a year later, I was approved a capital one credit card with low credit limit.

3 months later, I was approved for a discover more card.

I applied for the secured loan half a year before I applied for my mortgage.

I'm not sure how much the secured loan helped.

With these credit cards and loan, my credit score came to 720 when I applied for my mortgage in February.

It is nearly 1 year and 3 months for me to prepare.

If you only have a few months' credit history, I think it will be hard to be approved for a mortgage.

I also do not have any bad marks in my credit history.

According to my load officer, you need to have a credit score of 680 to be approved for a conventional loan.

I'm not sure about other loans.

Re: Can a share secured loan help to build credit?

Anonymous — Thu, 25 Jul 2013 17:23:46 GMT

Thank you so much for your swift response I am in aww! of what u did and how quickly you build it up. Your approach should definitely be a model to those who are starting with credit for the first time like students and migrants to the u.s.
I have one more question your shared secured loan was it from a credit union, because I am considering a 500 shared secured loan from my Credit union at a ten month repay back period. But I want to follow your footsteps first by getting a secured credit card perhaps 2 then wait to get approved for an unsecured one.
What do you think?
And of course late payments absolutely not an option with this plan
Btw(I recently opened my first CU account nothing attached to it just yet. Just have a sitting deposit in it )