@Schoolbuskid wrote:NO! Should i try going to see if i could get a loan from them to pay HSBC off? Not to forget that i havent even made my first payment yet! So thats why i was wondering if i should have HSBC reporting for a couple of months so that i could build credit in my other credit files (TU and EX) because i believe they report to all three! What do you suggest?
I agree, check out your local credit unions. We have a zillion in our area, and they have all opened their membership eligibility to anyone with a pulse in our area code, and they're all competing for new business. CU's are generally more willing to work with people who are rebuilding, and many carry a full line of checking, savings, CC's, car loans, personal loans, and even mortgages and lines of credit. It would be a great step in your rebuilding to get in with a good one.
Ask around at work --you know how it is, everyone has an opinion!
@Schoolbuskid wrote:OK! But wouldnt it look good to have an account from a major creditor like HSBC rather than a credit union? But it sounds like a credit union would be better in rates and willing work with you alot more!
In terms of FICO scores, it doesn't matter if you have a Visa from First Superlative Intergalactic Bank or from Fred's Bait and Video Emporium --they all score the same.
On a manual review, a lender will probably know that a CU is a better creditor than HSBC and some of the other issuers of re-builders, and they will understand why you went in that direction. CU's are just as legit as banks, so I wouldn't think that anyone would raise eyebrows at you belonging to one.
CU's won a big battle several years back, allowing them to extend membership far beyond the narrow categories they used to have. The commercial banking industry fought bitterly, because they knew that they'd finally have some real competition for consumers, and they lost.
BTW, most credit unions have federal insurance on their deposits. They will have a big blue and white sign with the letters "NCUA." They will probably also be called the So-and-So Federal Credit Union, even if no one ever says the word "federal." Some credit unions are not part of NCUA, so I would check into who backs up their deposits.
@haulingthescoreup wrote:
@Schoolbuskid wrote:OK! But wouldnt it look good to have an account from a major creditor like HSBC rather than a credit union? But it sounds like a credit union would be better in rates and willing work with you alot more!
In terms of FICO scores, it doesn't matter if you have a Visa from First Superlative Intergalactic Bank or from Fred's Bait and Video Emporium --they all score the same.
On a manual review, a lender will probably know that a CU is a better creditor than HSBC and some of the other issuers of re-builders, and they will understand why you went in that direction. CU's are just as legit as banks, so I wouldn't think that anyone would raise eyebrows at you belonging to one.
CU's won a big battle several years back, allowing them to extend membership far beyond the narrow categories they used to have. The commercial banking industry fought bitterly, because they knew that they'd finally have some real competition for consumers, and they lost.
BTW, most credit unions have federal insurance on their deposits. They will have a big blue and white sign with the letters "NCUA." They will probably also be called the So-and-So Federal Credit Union, even if no one ever says the word "federal." Some credit unions are not part of NCUA, so I would check into who backs up their deposits.
Thanks, I think ill give HSBC about 6 months and then apply for a payoff loan through my Credit Union! Do you think this is a good idea?