topic Re: secured share loans in 2015 in General Credit Topics

secured share loans in 2015

joltdude — Thu, 08 Jan 2015 02:23:42 GMT

Coming up on my one year anniversary of having a loc of 1000 and cc of 5000 on my thin file credit report. . in the past 3 months my scores have basically leveled off in the low 700s Pondering taking a 2 year 500 secured share or credit builder loan with my CU. Is it still worth it? No mortgage or car loan on cr.

Re: secured share loans in 2015

jamie123 — Thu, 08 Jan 2015 08:02:47 GMT

@joltdude wrote:
Coming up on my one year anniversary of having a loc of 1000 and cc of 5000 on my thin file credit report. . in the past 3 months my scores have basically leveled off in the low 700s Pondering taking a 2 year 500 secured share or credit builder loan with my CU. Is it still worth it? No mortgage or car loan on cr.

I would suggest apping for 2 new credit cards right now and follow those up with the credit builder loan.

You are leaving some points on the table by having only 1 credit card for FICO calculations and also points for not having an installment loan. You really should end up with 5 to 8 credit cards that you can keep open for life. You should apply for 1 or 2 CC per year until you reach your goal. As time goes on having 5 credit cards that are 10 years old will make your AAoA bullet proof which will really help your scores at staying stable when new credit is added throughout your lifetime.

Which credit card do you currently have?

Re: secured share loans in 2015

Anonymous — Thu, 08 Jan 2015 09:34:37 GMT

Alliant does 4 yr share secured on 500 bucks. Plus they give ya 5 bucks to open the savings account.

Re: secured share loans in 2015

joltdude — Thu, 08 Jan 2015 15:14:02 GMT

Have a CU visa with their lowest rate.. At that point I couldn't get a card from anyone, including Comenty and GE...

Not a student and dont have a large income.. Figured I could bypass the cruft if I upped my AAoA... Am thinking of applying for Discover and some flavor of Amex at some point...

Re: secured share loans in 2015

joltdude — Thu, 08 Jan 2015 15:16:45 GMT

Might take the Alliant as a second share loan.. Kind of like being able to have one stop shopping even if its not for the longer time and smaller amount.. The CU actually recommended it a few months ago, just recommended I hold off on it untill my actual score calculated.. Still.. No HP so....

Re: secured share loans in 2015

jamie123 — Fri, 09 Jan 2015 02:45:35 GMT

@joltdude wrote:
Have a CU visa with their lowest rate.. At that point I couldn't get a card from anyone, including Comenty and GE...
Not a student and dont have a large income.. Figured I could bypass the cruft if I upped my AAoA... Am thinking of applying for Discover and some flavor of Amex at some point...

You made a really great decision in starting with that CU card that has a $5000 CL. It takes most other people a couple of years to get their first $5000 CL card.

In my opinion you are a perfect candidate for a Discover IT and a Chase Freedom card. Both Discover and Chase with the Freedom like to be near the first to extend credit to someone. I would suggest apping for the Chase Freedom and then the Discover IT right after the Freedom. You should easily be approved for both. You will get a real FICO 08 TU score every month with the Discover card so you will easily be able to track your progress.

I would hold off on the AMEX app until 2016. They like to see at least 2 years of credit history for the most part. After your Discover IT and Chase Freedom turn one year old would be the next time for an app spree. At that time, 2016, you should app for an AMEX and a Cap1 Quicksilver and BOOM you have your 5 cards!

Re: secured share loans in 2015

joltdude — Fri, 09 Jan 2015 03:20:47 GMT

That CU card was unexpected... Iv gotten 5 offers (or is it 6) for the Amex PRG... 50K MR points (and about 3 for the Green) .. Hence why im tempted to take a gamble.. as one of the heavy hitters on this forum said you have a decent real EQ score. And Amex preapprovals tend to be reputable.. but like anything.. its not a guarentee.. Discover prequals arent that reliable, but even when i reconned the discover denial.. the rep offered me a co-app.. and i declined.. And was sort of given the.. might want to try again in a few months.. I had a really good thin file score (albeit not a real one.. and since it wasnt a student card....) The offers from those two started coming in weekly from both after the 6 months...... I dont have a large income, and work part-time to full time for myself.. So i do have to be a little cautious on where I apply..

Re: secured share loans in 2015

jamie123 — Fri, 09 Jan 2015 04:27:56 GMT

@joltdude wrote:
That CU card was unexpected... Iv gotten 5 offers (or is it 6) for the Amex PRG... 50K MR points (and about 3 for the Green) .. Hence why im tempted to take a gamble.. as one of the heavy hitters on this forum said you have a decent real EQ score. And Amex preapprovals tend to be reputable.. but like anything.. its not a guarentee.. Discover prequals arent that reliable, but even when i reconned the discover denial.. the rep offered me a co-app.. and i declined.. And was sort of given the.. might want to try again in a few months.. I had a really good thin file score (albeit not a real one.. and since it wasnt a student card....) The offers from those two started coming in weekly from both after the 6 months...... I dont have a large income, and work part-time to full time for myself.. So i do have to be a little cautious on where I apply..

Sounds to me like AMEX wants you as a customer. It sounds like you want to be their customer. Well?

With all those offers I think you have a solid chance. Let us know how it turns out.

It's time to pull the trigger on something. However it turns out at least you will know how you stand in the eyes of a lender.

Re: secured share loans in 2015

joltdude — Fri, 09 Jan 2015 19:34:26 GMT

Seems it.. But Im trying to figure out in what order and exactly when I want to pull the trigger on what...

Really want payment to process to bring down util to 10% or so.. its a bit high due to the holidays...

Thiking Discover first, that way if they offer me a secured ill take it and hold off on the secured share loan, or take it out as a creditbuilder loan instead...

Then the Amex...

Then the secure loan if the discover didnt require the security deposit.. Then apply for the 4year loan with alliant when the share loan distributes...

Do realize its a bit of a order of operations for this...

-J

Re: secured share loans in 2015

Anonymous — Sat, 10 Jan 2015 01:25:09 GMT

If it were me and I were gonna try for amex, I would do that first, just for thepurpose of showing them less inquiries.Oh and alliant only soft pulled me, as I wasn't going for checking or cc. no pull for the secured loan. I am however local to them so I opened account in a branch, YMMV. They did not pull at all when I did the share secured loan, which i did completely online/phone.

Re: secured share loans in 2015

jamie123 — Sat, 10 Jan 2015 15:30:30 GMT

@joltdude wrote:
Seems it.. But Im trying to figure out in what order and exactly when I want to pull the trigger on what...
Really want payment to process to bring down util to 10% or so.. its a bit high due to the holidays...

Thiking Discover first, that way if they offer me a secured ill take it and hold off on the secured share loan, or take it out as a creditbuilder loan instead...
Then the Amex...
Then the secure loan if the discover didnt require the security deposit.. Then apply for the 4year loan with alliant when the share loan distributes...

Do realize its a bit of a order of operations for this...
-J

Yes, make sure to wait at least 10 days after your CC credit card due date and perhaps 2 weeks because it is a CU CC to make absolutely sure that the CRAs have your proper UTI posted. You will look much better if your UTI is less than 10%.

If you are apping for the AMEX, do it first. They have the highest standards and you want your reports looking as best as possible at this point. The very second that you press the app button an HP will show on your reports.

After the AMEX app, no matter how it turns out. App for the Discover IT.

Once you have your new cards you can get the Alliant shared secured loan. This takes a while but there are no HPs involved at all. You need to:

1. Join Alliant Credit Union by opening a savings account.

2. Fund the savings account with $550. (So you have a bit of extra money to pay the interest on the $500 loan.)

3. Wait for 1 to 2 weeks for the funds to clear and your account to become active. (The time varies by individual.)

4. App for the $500 shared secured loan online.

5. Call the next day and inquire about the progress. They will finish the loan right there on the phone with you. Tell them you want to set-up autopay directly from your savings account.

6. Decide where you want the $500 loan deposited.

(So really, the shared secured loan only costs about $30 in interest over the loan's term. You are only tying up your $500 for the time it takes your account to activate because they are giving you back the $500 as a loan.)

Re: secured share loans in 2015

Anonymous — Sat, 17 Jan 2015 01:05:08 GMT

I just did that, with Coastal Federal CU. Everything went very smooth, didn't have to visit a physical branch even once. To become eligible for that CU you should pay one-time $18 fee. Deposited $550, took out a $480 loan for 24 months, 2.1% annual interest. I don't see any hard credit hit on my report, maybe they wave credit checks for secured loans. My TransUnion score immediately jumped 20 points. FICO score rose 7 points, and a message appeared "PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH:". So I think it is bound to rise in the future as I pay that loan down.

Re: secured share loans in 2015

vanillabean — Sat, 24 Jan 2015 03:10:45 GMT

@Anonymous wrote:

alliant only soft pulled me, as I wasn't going for checking or cc. no pull for the secured loan. I am however local to them so I opened account in a branch, YMMV. They did not pull at all when I did the share secured loan, which i did completely online/phone.

How long did you spend on the phone? I passed some idle time at my local credit union today by going for a $500 installment loan. The process took up the entire lunch hour; I am not kidding. It was a hard pull as it wasn't within 60 days of opening my checking account. The friendly clerk asked me so much additional information that I had to wonder if secured really meant secured; some of the questions may well have been just making conversation, I don't know. The loan is good for 24 months, probably needed $1000 for 48 months. $21.42 per month, have seen better, but the whole thing is ridiculous of course lol.

Re: secured share loans in 2015

Revelate — Sat, 24 Jan 2015 03:52:42 GMT

@Anonymous-own-fico wrote:
@Anonymous wrote:

alliant only soft pulled me, as I wasn't going for checking or cc. no pull for the secured loan. I am however local to them so I opened account in a branch, YMMV. They did not pull at all when I did the share secured loan, which i did completely online/phone.

How long did you spend on the phone? I passed some idle time at my local credit union today by going for a $500 installment loan. The process took up the entire lunch hour; I am not kidding. It was a hard pull as it wasn't within 60 days of opening my checking account. The friendly clerk asked me so much additional information that I had to wonder if secured really meant secured; some of the questions may well have been just making conversation, I don't know. The loan is good for 24 months, probably needed $1000 for 48 months. $21.42 per month, have seen better, but the whole thing is ridiculous of course lol.

That wasn't my experience at all... what did you?

Anyway they did call me, but they simply asked "What do you need this for?" to which I answered "For FICO Scoring purposes, the money from the loan is going to sit in the savings account on autopay for the loan"

Dunzo, was that simple. No HP at all from Alliant on my credit reports for either membership or share secured loan. Couldn't be happier with them for a 5 year term on $500 at 3% APR.