@Anonymous wrote:
Subexistence wrote
I'd prefer it be installment so I can get credit mix.You'll be better served by executing the SS loan technique once you have a FICO score, which sounds like it will be 3-4 months from now. Once you have done that, you can apply for another card -- one that you actually like. And then once you have two cards you like and the SS loan, I'd close out the other stuff since you find it confusing and you have such a bad feeling for that CU.
Once those products are closed, you'll have a profile you like and understand, and products you like and understand.
Incidentally, Revelate really hit the nail on the head earlier when he suggested you relax and just not get bent out of shape about this stuff. Your feeling seems to be that it is really wrong that you don't have several cards and loans right now -- as an 18 or 19 year old! Well back in the day nobody had credit cards when he was that young. You have done a nice thing by starting out with a single tradeline (the Discover card). That's a huge help. By the time you are 40 you will have a profile that is over 20 years old! And in a couple years you can have a fine score, with a few cards and an SS loan in place.
I'm not sure what I would be loaning? Cars, student loans, mortgage, etc? I'll need a car 2 years from now , I have tuition remission for school fees, and I'm not getting a house till I graduate.
I technically want citidouble cash and chase freedom so it'd be 3 cards and I can't wait to close out of secu but the time I plan to close secu is when the LOC provides no use. That will happen once I get another LOC that's counted as an installment loan from elsewhere. I don't have any current LOC searching plans yet.
Even if I don't like secu I still can't act irrationally. Closing an account even if secu will hurt my scores and even if the LOC is confusing, closing it just because I don't like secu will hurt my score. However I'm perfectly willing to come to these forums to warn people not to use secu.
I should probably relax I guess.
Starting Score: Ex08-732,Eq08-713,Tu08-717
@Anonymous wrote:
I'm not sure what I would be loaning? Cars, student loans, mortgage, etc? I'll need a car 2 years from now , I have tuition remission for school fees, and I'm not getting a house till I graduate.
I technically want citidouble cash and chase freedom so it'd be 3 cards and I can't wait to close out of secu but the time I plan to close secu is when the LOC provides no use. That will happen once I get another LOC that's counted as an installment loan from elsewhere. I don't have any current LOC searching plans yet.
Even if I don't like secu I still can't act irrationally. Closing an account even if secu will hurt my scores and even if the LOC is confusing, closing it just because I don't like secu will hurt my score. However I'm perfectly willing to come to these forums to warn people not to use secu.
I should probably relax I guess.
OP, you would not use the loan for anything.
- You follow the procedure of taking a small Shared Secure Loan of $500
- You pay off 91% off almost immediately ($455)
- You make minimal monthly payments on the balance of $45 for a few years until the end of the loan
This is to add an installment loan to your profile. The reason for immediately paying it down to <9% is for optimal FICO score and to only pay a trivial amount of interest. If you already have an open installment loan on your profile, this trick will not help to improve your score. It is only for those who want to add an installment account but don't really need a loan or want to pay much interest.
Thank you that makes it more clear.
@Anonymous wrote:Closing the accounts you don't like (the SECU accounts) would not hurt your score, not even by one point, as long as you had the SS loan and another card in place first. It would help you (and us) by allowing you to put to rest a chapter of your life you find upsetting.
As Abby explains, the SS loan is not taken out for the cash, it is part of a broader technique for raising your credit score. I gave you a link earlier that explains the SS Loan Technique. You'll have to read the first two posts in that thread if you wish to understand the technique and why ti works.
Best wishes regardless.
I just read through the whole thing. From my understanding, closing the account could lead to decreased utilization rate(my secu account has 0 utilization) and if it lasts any length of time before expiring then I could lose age of credit history. Even a card as old as a few months might help my age of accounts. Although if the difference is negliglble which I hope it is, then I'll happily close that miserable product.
I'll look into the technique if the LOC doesn't end up counting as an installment loan on FICO. Otherwise I'd be one of the people who has an installment loan already. However I know some friends of mine who could take advantage of the technique so thank you!
If the LOC does count as an installment loan, it could present a very interesting phenomenom. It would mean a $500 LOC wasn't counted as revolving credit like it's supposed to do. Most importantly it means one could obtain an installment loan without paying any interest if such a phenomenom could be replicated. Although I was pretty angry about the credit card and customer service, I'm not angry with the LOC but rather curious. I don't hate what I don't understand.
@Anonymous wrote:Closing an account does not affect any age-related factors.
I thought closing an account causes that account to be not be calculated in average age.
@Anonymous wrote:That's a common belief but it is in fact untrue. Both FICO and Vantage consider closed and open accounts equally in their AAoA calculations. Furthermore, closed accounts continue to age. Thus, an account that is closed after being open for 0.25 years will be (8 years later) 8.25 years old.
FICO and Vantage also consider closed and open accounts equally in their other age-related factors... e.g. "Age of oldest account."
Hmm I guess I'm about ready to close down the credit card account. Just one last concern before I do. How hurt will my utilization factor be from closing the account?