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Best credit builder loan?

fitlife
Valued Member

Best credit builder loan?

I don't want to spend a lot but im willing to take a higher any if it will build my credit up faster. I'm at 596 and I would like to get to 700s in the shortest amount of time.

What are the best credit builder loans to get there?
Message 1 of 7
6 REPLIES 6
Aspireto850
Established Contributor

Re: Best credit builder loan?

@fitlife,

 

My suggestion would be for the Amazon credit builder card...if you're an Amazon shopper. After 7 on time payments it can get converted from secured to unsecured card. It's reports within about 2 weeks, from account opening, on your credit report. Not sure of min or max deposit so you will have to look at up.

 

Good Luck









Message 2 of 7
FireMedic1
Super Contributor

Re: Best credit builder loan?

Grab a self lender loan. Simple. Easy. Effective. There is no way a score is going to go up fast. It takes time. And depends what baddies lie in the background to stunt the growth. The time it took for things to go bad. Takes twice as long to recover most of the time.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 3 of 7
KJinNC
Valued Contributor

Re: Best credit builder loan?

Going from 596 to 700 may be very quick or rather slow depending why you are at 596. If it's due to lack of accounts, you can improve your scores rapidly, but if you have derogatory items, it will go slower unless/until you get those items removed.

 

I thought I saw that Amazon backed off the secured store card, due to complaints from politicians that it was "predatory." If it's still available, it's a great option for anyone who shops much at Amazon, because you get a 5% discount if you are a Prime member.

 

Otherwise, I suggest checking prequalifications with Discover and Capital One. If you prequalify for any Discover card including the secured card, I recommend grabbing it. Discover is great, and the secured card can graduate to unsecured after seven statements. With Capital One, the best thing to get would be Platinum unsecured, because it can be product-changed to QuickSilver down the road. The Platinum secured card is not as desirable because it will never graduate.

 

If you do not prequalify for any of the above, you could get an Open Sky card for now, and try again in two or three months.

 

I do not suggest getting more than two or three cards for now unless you have a specific well-thought-out reason to do so. Loading up on secured cards will limit what you can do in six months.

 

I would also seriously consider a Self Lender secured installment loan.


FICO Resilience Index: 66. Cards: 13/24, 2/12, 2/6. Accounts including loans: 14/24, 3/12, 2/6. At first accidentally, later deliberately, I used what I call the "thick-start" build method, which leads to heavy credit-seeking for a while with the goal of coming out of it without needing to build a thin profile for years. There are pros and cons. Thread describing method
Cards (oldest to newest)


Authorized user / Corporate / Auto loan / Personal loan

Card CLs total $144,100, not counting the AU card. The AU card brings the total to $170,600. In March 2019, card CLs totaled $0.
CU and bank memberships: Coastal Credit Union, member since 1987, direct deposit; PenFed, member since 2019; Navy Federal, member since 2020; USAA, member since 2020; Chase Bank, member since 2020.

Closed but still on reports: American Express Delta Gold, $1,000, 09/19-10/20 | American Express Hilton Aspire, $3,100, 09/19-12/20 | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Note: My signature is updated frequently, and updates appear on all instances of my signature including on old posts.
Message 4 of 7
Grizzly1
New Contributor

Re: Best credit builder loan?

I think your on the right path and asking the right questions but also think you need to realize that gaining 100 points in a relativly short amount of time may set you up for dissapointment in the long run. I noticed you mentioned having a charge off in another post with BoA. How long ago was that? Also how many inquires do you currently have? I'm not saying 100 points in a year is impossible, but it's not exactly easy either depending on your credit background either.

Message 5 of 7
FireMedic1
Super Contributor

Re: Best credit builder loan?

Back to topic of a credit buidling loan. Self Lender as I said is easy to do. And once its paid you get the money! Cant go wrong. And it will count in the FICO bonus once 3 cards are established in time. But if you have a mortgage, car payments or any type of other loans already. It wont do any good really. Only need 1 loan to be effective.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 6 of 7
Aspireto850
Established Contributor

Re: Best credit builder loan?

@KJinNC,

Didn’t know that about the Amazon credit builder card; will have to google some info. Out of curiosity do you know why this card vs. any other credit builder would be considered predatory?

OP, sorry to go off topic for a moment!








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