topic Credit Builder Loan in Rebuilding Your Credit

Credit Builder Loan

Anonymous — Fri, 01 May 2015 03:33:00 GMT

I spoke with my CU today, they told me about their credit builder loan -

I googled and found a few like this one: https://www.dcu.org/loans/credit-builder.html

and even this strange one: https://www.lendup.com/credit-education/credit-building-loans

Anyone has tried a credit builder loan? what do you think of these? worth a try?

Re: Credit Builder Loan

gdale6 — Fri, 01 May 2015 03:49:19 GMT

@Anonymous wrote:
I spoke with my CU today, they told me about their credit builder loan -

I googled and found a few like this one: https://www.dcu.org/loans/credit-builder.html

and even this strange one: https://www.lendup.com/credit-education/credit-building-loans

Anyone has tried a credit builder loan? what do you think of these? worth a try?

If you have any other instalment loan you dont need this type of a loan. Personally I dont recommend them just for scoring purposes, revolving credit is where the big action is score wise.

Lend Up is outrageous I would never get such a loan with them.

Re: Credit Builder Loan

Imperfectfuture — Fri, 01 May 2015 04:07:02 GMT

@Anonymous wrote:
I spoke with my CU today, they told me about their credit builder loan -

I googled and found a few like this one: https://www.dcu.org/loans/credit-builder.html

and even this strange one: https://www.lendup.com/credit-education/credit-building-loans

Anyone has tried a credit builder loan? what do you think of these? worth a try?

Actually, you are leaving 50 to 35 pts on the table without installment loan. I personally did secured loan with local credit union, 500 for 4 years, 11.12 a month (less than the price of monitoring your scores, think about it), they are scored the same as auto and personal loans, doesn't matter how big they are.

Alliant Credit union is also a good one. They offer .9% on savings, and you earn that while you have the secured loan. My interest at Alaska is 3.2%. Either method, deposit 500 into savings account. Sign up for secured installment loan. You pay more for lend up, I wouldn't use them. They will give you a check for 500 back. Set up auto pay for the payment each month (set it and forget it). Take the 500, invest in stock that pays more than 3% interest for the four years.

I have no other loan accounts, and both my auto enhanced and mortgage enhanced scores are over 700. Revolvers won't build those scores, it looks good for underwriting, especially if you later want to apply for personal line of credit. And, with the soft point boost, as the loan account ages, provides a buffer for when you add several new cards to your profile.

So, Dale, I most humbly disagree. . However, if you have an active auto loan, student loan, or mortgage, you don't need to do this.

Re: Credit Builder Loan

Anonymous — Fri, 01 May 2015 05:18:43 GMT

@Anonymous wrote:
I spoke with my CU today, they told me about their credit builder loan -

I googled and found a few like this one: https://www.dcu.org/loans/credit-builder.html

and even this strange one: https://www.lendup.com/credit-education/credit-building-loans

Anyone has tried a credit builder loan? what do you think of these? worth a try?

OP your scores in your siggy potentially qualify you for an unsecured loan at BBVA. Here's the link: https://www.bbvacompass.com/loans/personal-loans/?t=1

Re: Credit Builder Loan

Anonymous — Fri, 01 May 2015 11:54:59 GMT

I have a secured loan just for my future mortgage application. I will pay it down or off before applying for a mortgage. I need it to show I can make timely payments. I think it all depends on what you want to do with your credit in the future.