topic Re: Multiple Savings Secured Loans from Same CU? in Rebuilding Your Credit

Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 08:24:41 GMT

Does anyone know if taking out two savings secured loans from the same lender (credit union) will carry the same weight as taking out one savings secured loan each from two different credit unions? Any idea how it will show up on one's credit report?

I have been approved to join Alliant FCU and I am wondering if I should bother applying to a second FCU. At the moment, I am not interested in applying for a CC from them; I just need the installment accounts to help my credit mix.

Thanks.

Re: Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 09:49:29 GMT

A second installment loan probably isnt worth it, whether with the same or a different CU. I had 2 for a period of time (1 was a purposeful loan, paying off some old stuff) the other just a credit builder (when I realized i could qualify for a mortgage but the dti hit on the first loan was too high, but i wanted to keep a loan going). When the 2nd loan hit my reports i got basically no benefit to having the 2nd. When the first one got paid off, I lost less than nothing (actually gained a few points on each). I would not bother with getting a 2nd loan. You really arent adding to your credit mix (its not a real estate or auto loan).

Re: Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 10:46:28 GMT

@Anonymous wrote:
A second installment loan probably isnt worth it, whether with the same or a different CU. I had 2 for a period of time (1 was a purposeful loan, paying off some old stuff) the other just a credit builder (when I realized i could qualify for a mortgage but the dti hit on the first loan was too high, but i wanted to keep a loan going). When the 2nd loan hit my reports i got basically no benefit to having the 2nd. When the first one got paid off, I lost less than nothing (actually gained a few points on each). I would not bother with getting a 2nd loan. You really arent adding to your credit mix (its not a real estate or auto loan).

Awesome! Thanks for that. I'll just stick with Alliant and get a (very) long-term loan from them. I am looking to go back to school in Fall '16 and I want to make sure I do all I can to get the best rates that I can, within the timeframe I have to work with.

Re: Multiple Savings Secured Loans from Same CU?

gdale6 — Thu, 09 Apr 2015 17:33:26 GMT

If you have student loans you dont need this type of instalment loan.

Re: Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 17:36:16 GMT

Only one installment account is needed for credit mix. Additional accounts do not not help. Auto loan or student loans make a secured personal loan unnecessary.

Re: Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 21:33:23 GMT

Thanks Dale / Norman. I'll stick to the single loan app; I have no others right now.

Re: Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 21:35:06 GMT

Amount does not matter either - make it for the lowest they will go with the longest terms they will do.

Re: Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 21:38:19 GMT

@Anonymous wrote:
Amount does not matter either - make it for the lowest they will go with the longest terms they will do.

Oh, I didn't know that. I had read somewhere else on the forum that the larger the loan amount, the more it helps your credit score. From what you're saying, installment accounts such as these work differently from revolving account credit limits, where higher is better?

Re: Multiple Savings Secured Loans from Same CU?

Anonymous — Thu, 09 Apr 2015 22:35:59 GMT

@Anonymous wrote:
@Anonymous wrote:
Amount does not matter either - make it for the lowest they will go with the longest terms they will do.
Oh, I didn't know that. I had read somewhere else on the forum that the larger the loan amount, the more it helps your credit score. From what you're saying, installment accounts such as these work differently from revolving account credit limits, where higher is better?

Even revolving limits do not really effect scoring, other than changing your UTI% if there are balances.