New to loans (boosting credit)

[Anonymous]

Welp, I am in college, starting my credit path. I now have PNC secured card, Discover it, Chase AARP, and Sallie Mae Mastercard. But I still have never taken a loan out. Where should I start?

I've been told to take out a personal loan from my bank (Huntington), but I am just not sure. So I am here asking you guys! For boosting my credit score/history through loans, should I take out a personal loan? Where should I take it out through? (my bank at Huntington, or somewhere else?) Does it matter how much I take out? etc.

Thanks guys.

[Scupra]

It doesn't matter where you take it out as long as they report to all three CRA's. You should be fine with a 12 month $1k loan

[Anonymous]

Great. Glad to hear it's nothing too crazy complicated! Thank you!

[Anonymous]

you should be fine to do it at your bank, as stated, and even if you aren't approved, you can always do a $6001$1,000 secured loan for 6-12 months.  the benefit in that is if you do that, you can put the initial money in a CD, do a CD secured loan for a low low interest rate, then the money they give you as a loan you can put in your savings, then after you pay your monthly payments out of your regular money that you make every month, you have doubled your money

[takeshi74]

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@Anonymous wrote:

But I still have never taken a loan out.

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Don't unless you actually need one.  Don't take one just for scoring purposes.

[Anonymous]

Isn't having on my credit report that I've taken a loan, and paid it off as agreed, a good thing though? When I go to get a car or motorcycle loan for instance, won't they say my credit is pretty limited due to me not having any loans? 

The main reason I am wanting to do such a thing, is because I want to be able to get the best loan possible for a new car within the next 1-2 years... as well as I will be looking to buy myself a home in about 2-3 years. 

So should I look into getting a personal loan before buying my first new car and home? or should I just dive into getting a new car loan, and then a mortgage later and I'll be fine? I just want to get the lowest APRs/interest possible is all.

[Anonymous]

@2011XTERROR I am a little confused on what you are saying I could do. 

1) Take out a $600 - $1000 secured loan for 6-12 months

2) Put that money from my secured loan into a CD secured loan

3) Then that money they give me from the CD secured loan, I put into my saving and dont touch it

4) Then pay off my $600-$1000 secured loan, and my CD secured loan monthly payments

5) Then I have that loan money in my saving, and I get the CD money back.

Is that correct? As long as I followed you correctly, and as well as I am understanding how a CD works as well lol.

[Scupra]

$1k loan for 12 months shouldn't cost that much, I would do it if it were me. Obviously the choice is yours to make in the end

[Anonymous]

@ optimiztix - kinda-ish lol

let me just give one figure and it may be easier to explain/understand
if you don't get approved for a loan you can try this to build credit:

take $1,000 of your own money and put it in a 12 month CD (or whatever amount you want but the minimum is usually $500)
once it's in a CD, use that as collateral for a CD-secured loan with your bank or credit union
(so at this point you have your own money gaining interest in the CD and you have the loan cash they just gave you of $1,000)
take the $1,000 they just now gave you and put that in savings or CD

every month you still have you loan payment, so pay that like you would a bill with your income from work. by the time it's paid off you have two $1,000 CDs ready to mature and you have $2k vs your original $1k

[Anonymous]

and btw with a credit union a CD secured loan interest rate is usually only 2% above the CD rate. so if the cd rate is .6% then the loan rate is 2.6%. that's about as cheap as you can get when it comes to cash loans.