topic Credit Rebuilder Loan in Rebuilding Your Credit

Credit Rebuilder Loan

CreditOCDinCali — Mon, 30 Nov 2015 19:58:03 GMT

I'm contemplating on taking out a credit rebuilder loam from the credit union. The reason being I need to pay off a few credit cards to a zero balance so it'll also be like a consolidation instead of paying every month which seems like there is no end in sight! The loan will only be for $1000 and it should also improve my credit. The thing is I will another inquiry on my report and dreading that cause I already have 9 inquiries this year. The positive side is once my credit updates and shows 2 paid off credit cards I think it will have a very positive effect on my score. I also plan on buying a home soon, will that have an impact on taking out the loan? I don't know what to do, I just want my cards paid off and my credit score to increase. I'm currently at 631- Experian 611- Transunion and 609- Equifax

Re: Credit Rebuilder Loan

Anonymous — Mon, 30 Nov 2015 20:25:01 GMT

If you already have 9 inquiries, a 10th will not make much difference other than another 5 points or so off your credit score. When applying for a mortgage, I would almost be certain that a LO would ask for an LOE for so many inquiries in such a short amount of time. The installmen loan would aid in adding to your credit mix if you do not already have one, but will hurt your score once it is paid off it is indeed your only installment loan.

Re: Credit Rebuilder Loan

CreditOCDinCali — Mon, 30 Nov 2015 20:45:45 GMT

No it's not my only installment loan- I have a car loan and a student loan. I just want the burden of monthly credit card payments gone.

Re: Credit Rebuilder Loan

Anonymous — Tue, 01 Dec 2015 00:06:01 GMT

I totally feel you. Just erased 10k of CC debt in May down to around $200 by September. Awesome feeling to not have to make multiple large CC payments every month.

Re: Credit Rebuilder Loan

CreditOCDinCali — Tue, 01 Dec 2015 03:01:07 GMT

Congrats! I would like to be able to do the same. I'm constantly feeling like I have a chain and ball tied to my ankle.

Re: Credit Rebuilder Loan

Anonymous — Tue, 01 Dec 2015 03:49:17 GMT

@CreditOCDinCali wrote:
Congrats! I would like to be able to do the same. I'm constantly feeling like I have a chain and ball tied to my ankle.

It took a lot of overtime at work and many 16 hour days, but seeing the balance go down by $2000 and $3000 chunks is both great and saddening. Happy to get out of debt, sad to see such large amounts of money being spent on non-fun things lol. The best feeling was pulling my FICO scores after they new balance reported. Before they were 651 664 685, and after they are 734 731 724. Also had a judgment and chargeoff early excluded as well during that time.