topic Secured loans wash and repeat in Rebuilding Your Credit

Secured loans wash and repeat

Caitt — Wed, 14 Aug 2019 00:44:30 GMT

Hello. I was told to get a secured loan of 200 and pay it within the month and wash and repeat. Does this affect your aoaa? Will this help my credit?

Re: Secured loans wash and repeat

Hockeypnc1 — Wed, 14 Aug 2019 00:45:54 GMT

Where would you get a loan that low?

And you mean pay off the entire thing right away?

Re: Secured loans wash and repeat

Caitt — Wed, 14 Aug 2019 01:07:38 GMT

I have CDs I can borrow against. But with a secured loan they do not do inquiries due to it being your money you are borrowing. I do mines thru my credit union. Yes get 1 and pay it off within 21 days and then get another and pay it off the same way.

Re: Secured loans wash and repeat

Remedios — Wed, 14 Aug 2019 01:45:28 GMT

@Caitt wrote:
Hello. I was told to get a secured loan of 200 and pay it within the month and wash and repeat. Does this affect your aoaa? Will this help my credit?

If each loan is reported as a separate one, it can annihilate your AAoA rather quickly unless you have 30+ accounts that are several decades old.

The point of secured loan is to get one with a lender that would allow you to immediately pay it below 9% and push next payment well into the future, so you can get benefits of a low utilization loan without doing exactly what you described above