wells fargo secured cd personal loan

[Anonymous]

Does wells Fargo report it to all 3 bureau it would help to improve my credit no problem is there a hard pull

[KSK1912]

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@Anonymous wrote:
Does wells Fargo report it to all 3 bureau it would help to improve my credit no problem is there a hard pull

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Yes they will report to all 3 bureaus. It is reported as an installment loan. I have done it last june, and just paid it off. Here is what you need to do. Go to your branch, tell them you want the secured cd loan. Minimum they will do is $3K. You need to have th funds in your account, checking or saving don't matter. They will open a new savings account, and it is named long term savings. To borrow $3K you will need $3075. Once you are approved, they will NOT withdraw the funds, but put a hold on the funds, and will deposit the money in the account that you want them to. And after that you start making payments on it.  I did it for 36 months and my rate was i think right around 8% and the payments were $97 / month. And once your are approved and all the paper work is done, the money will be in your account before you leave the bank.

When i did this, my fico scores were around 550

You can always pay it off early. no penalties. If you decide to pay it off, before you make your final pay off payment, call the customer sevice and have them transfer the money. Dont make the payment yourself, because they want to know that you are paying it off. My last payment i made online to pay off the loan, was reversed, and withdrawn twice in a week for the whole payment to be applied to the principal to pay off the loan, and it took them over 2 weeks to finally show it as paid off. Once it is paid off they will tell you it will be about 2 weeks for them to release the hold on your funds in the savings. You don;t need to wait that long. Go to your branch, and talk to your banker. My banker took care of it in less than 10 mins and when i walked out of the bank my funds were available to use. The effect on your credit score will depend on the overall credit profile. Do you have any car payment? If not this will be great for you. One thing i need to mention is, if you can afford some extra money, get a loan for $3K and turn around make a payment towards your principal for about $750 This will bring your loan amount / loan balance ratio to 75%. So you probably will not get any hit on your credit score for owing 100% of the loan. Once you start making payments, you will slowly see the increase on your score. Couple ways this will impact your score positively. 1- It's an installment loan which is good for your credit account mix (10% of your fico score.) 2- It is another positive trade line, so as long as the payments are being made on time, it will work great for you in the long run as it will help your fico, car loan, and mortgage score because they are all installment loans. 

Overall, yes it will help, but dont expect overnight improvement of 50 points, because installment loans help your score over time, not instantly. As your balance keeps going down, you will see an increase in your score. Feel free to PM me if you have any other specific questions. One last thing, The longer you make payments, the better it will be for your reports and fico score. I just did not have the patience to wait and keep making payments and paid it off in 9 months, but the longer you take the better it is.

[Anonymous]

Thank you very much ksk1912. I was going to deposit exactly $16K for 36 months. reason for that is the higher the amount the better my profile looks and in the future a lender will look at it and say "wow this guy can handle debt" further more I just got approved for a auto loan with capital one for a used car at 2.99% Apr $14,600. Anyways this loan is for establishing credit i'll try to pay this off with my own income so I'll be able to double my savings account from $16,000 to $32,000 in 3 years that should lonly be like $580 a month for 8% on $16K. This response of yours helped a lot thank you.

Also any idea if BOA does that same as wells Fargo because my primary bank is with bank of America and I cant find any information on getting a secured cd personal loan through them I hope it reports same as wells Fargo if not so be it.

[KSK1912]

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@Anonymous wrote:
Thank you very much ksk1912. I was going to deposit exactly $16K for 36 months. reason for that is the higher the amount the better my profile looks and in the future a lender will look at it and say "wow this guy can handle debt" further more I just got approved for a auto loan with capital one for a used car at 2.99% Apr $14,600. Anyways this loan is for establishing credit i'll try to pay this off with my own income so I'll be able to double my savings account from $16,000 to $32,000 in 3 years that should lonly be like $580 a month for 8% on $16K. This response of yours helped a lot thank you.

Also any idea if BOA does that same as wells Fargo because my primary bank is with bank of America and I cant find any information on getting a secured cd personal loan through them I hope it reports same as wells Fargo if not so be it.

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Peanut,

looks like you have already established some credit and you do have a decent income / savings. If i were in your case, here is what i would do. I bank with wells fargo and always tried to give my business to them. Unfortunately banks don't always care about it. I had a friend working as a mortgage broker at WF and he got his mortgage from Fifth Third bank I think in your case, it would be better to do another loan from a different institution so that you have more lender variety in your report. But then again this depends on what else is in your report. If you already have 10 different credit cards / accounts, than you would be good to go with your own bank. But overall i was very happy with the loan i got from WF, with only one exception. I just could not see a timely, every month after statement cut off type of reporting to credit bureaus with the loan. Yes they did report everything, to all 3, no data missing, but i just could never figure out in 9 months or so that i had the loan, when they report. But again, everything has been reported no missing data at all. My rate included a small discount for having a checking account and signing up for auto payment of the loan monthly. And one important thing.IF you will have 2 loans, you may want to do one loan 12 months longer than the other. With installment loans, when you pay off / close the account, your scores take a hit. Mine went down about 15 points on EX simply because you dont have an active installment loan anymore. So if your car payments is 60/72 months, you may consider doing one loan for $9K longest term available, and one for 24 or 30 months $7K so that when the first one is paid off, you still have the next one and the car payment going on, and then the second one is paid off, you have the car loan going on. By that time, with the ontime payment history of 2 years+, and loan balances coming down significantly, you will see next to none score drop, or the drop will be very insignificant because of the jump you will gain by paying them on time. Good Luck and don't forget to update us of the situation. 

[ttleigh]

I agree with the above post that says to diversify your banking. I used to have all my savings, checking and investments and credit cards through Wells Fargo and then I gradually came to the realization that they don't really give a crap about me as customer so I trimmed down to just checking, line of credit and one sock drawered credit card.
Everything else I split between 2 credit unions and I couldn't be happier. I have a secured loan with my CU at under 3% interest. My other credit union gave me my highest credit line of 10k with no fee balance transfers and 3.9% for 18 months.
I love having the 3 relationships so when I need something I have more options.

[Anonymous]

UPDATE!!!!!

As I'm aware what I'm getting myself into and definitely ksk1912 is right however I'm paying this off 1 year and a half so the Apr is something I'm not too worried about. and I want a high loan reporting which is why I was going to put $16,000 and thought that was a bit too much so I lowered it to $12,000. However Wells FARGO agreed but they said I needed to deposit $632 more to get qualified for $12,000 because they only offer 95% loan off the collateral.

[Anonymous]

UPDATE!!!!! I applied here are the results what does this mean? did you get this answer to? AM I in the bubble?

[Anonymous]

Just got this in my email from wells Fargo

[KSK1912]

This is great. Your rate is just a little better than mine too. And like you mentioned, i did not worry about mine either. Because, a the time, being a rebuilder, i was more worried about my credit than the extra $5 i would pay monthly. I see that as a FEE to help me with my credit score. And with everything i have done, last month i managed to refinance a 27.99% car loan with a 3% interest car loan. That extra they asked for is yours too, once the loan is paid off, so no worries. For you this will be a win-win situation. You are forced to save that money in the next couple years, and it will help with your credit. Congrats!

And like i mentioned before, do not forget to make your final payment over the phone to pay off your loan. It will make it a lot easier and quicker to have the payment applied to the principal and pay off the loan; and also. to get the hold removed on your security deposit, so you can get your money back quicker.

[Anonymous]

Thanks for that I really expected 8.5% Apr perfect got it at the end of the term I'll call to payoff the final payment and congratulations on your refinance loan for the 3% wow oh my 26.99% Apr is nuts.

Exactly I'm shooting for business lines of credit I am very handy and would like to fix and flip homes in honest and safe market values. Like you said you need to invest to get more back even credit itself.

ok so I called the wells Fargo representative they said my loan is conditionally approved pending for underwriting decision for two main reasons and this is what they emailed regarding the two main reasons they need to evaluate me. I have the funds and everything hmmm?