I have looked at both Alliant Credit Union and State Department Federal Credit Union because of their savings-secured loans. I wanted to open one account with one bank/credit union and deposit into savings, then take a 100% ltv out on it, then do the same at the next bank/credit union, then use a portion of it to secure a deposit on a CC (BofA Secured, preferably). That way I use the same money three times, with a bit left over, and I just pay a small amount in interest. The goal of this is to really increase my credit file and boost my scores before I remove all my collections.
Unfortunately, I am ineligible for both credit unions, so I'm searching around for other places I can go to. Anyone have any input on the matter? I don't have the full amount I want to deposit yet, but I would like to figure this out before I do so I can immediately do this once the funds. Thanks in advance for any replies!
[EDIT] Ok, so I've found that the credit union I want to bank with has the option for this kind of thing, but not much detail on their site about it. They call it a "Share/Certified Secured Personal Loan". It says it's a variable interest rate, minimum is 12%, max is 18%, so I'll have to call and see what the other details are and if it's something I can do. Still looking for others, though!
Everyone can join the St Dept FCU most do through membership in the ACC (American Consumer Council). I would not be executing this plan you are not going to get very far Fico wise with installment loans. I would be concentrating and putting most of my efforts into obtaining revolving credit cards, I would have at least 3 bankcards to begin with and maybe a store card thrown in there. The bulk of Fico action is in revolving CCs not installments, it would be a waste of money to do what you a have outlined here IMHO.
@gdale6 wrote:Everyone can join the St Dept FCU most do through membership in the ACC (American Consumer Council). I would not be executing this plan you are not going to get very far Fico wise with installment loans. I would be concentrating and putting most of my efforts into obtaining revolving credit cards, I would have at least 3 bankcards to begin with and maybe a store card thrown in there. The bulk of Fico action is in revolving CCs not installments, it would be a waste of money to do what you a have outlined here IMHO.
I did not know that! I thought it was just through eligible employers you could join.
I have VERY low personal income (not even $2,000/year). My bf and I are not married yet, so I can't pool his income with mine in most CC apps as HHI... I've looked at apps, and some may allow it considering we're in a community property state, but I'm not sure, since it doesn't really specify. The main reason I was going to do these loans is to get some sort of revolving account going, and hopefully boost my score a bit while I pay collections, and then once I have better bearings I would apply for more cards. I just don't see myself being approved for many, and I don't want to waste a bunch of HPs. I got my collections knowledge down pat, but getting positive accounts gong I don't have much knowledge about. Still learning there.
@xaiduz114 wrote:
@gdale6 wrote:Everyone can join the St Dept FCU most do through membership in the ACC (American Consumer Council). I would not be executing this plan you are not going to get very far Fico wise with installment loans. I would be concentrating and putting most of my efforts into obtaining revolving credit cards, I would have at least 3 bankcards to begin with and maybe a store card thrown in there. The bulk of Fico action is in revolving CCs not installments, it would be a waste of money to do what you a have outlined here IMHO.
I did not know that! I thought it was just through eligible employers you could join.
I have VERY low personal income (not even $2,000/year). My bf and I are not married yet, so I can't pool his income with mine in most CC apps as HHI... I've looked at apps, and some may allow it considering we're in a community property state, but I'm not sure, since it doesn't really specify. The main reason I was going to do these loans is to get some sort of revolving account going, and hopefully boost my score a bit while I pay collections, and then once I have better bearings I would apply for more cards. I just don't see myself being approved for many, and I don't want to waste a bunch of HPs. I got my collections knowledge down pat, but getting positive accounts gong I don't have much knowledge about. Still learning there.
Ok, you want to be going after Secured Credit Cards then not a Secured Loan, there is a big difference. Some have plowed ahead before gaining info on the difference only to find they have not helped themselves at all. its a good thing you posted this here or I fear you would have been shoved into what is called a share secured loan and that is not what you want. Always make sure you are clear you want the Secured Credit card and not the secured loan. Good luck 
@gdale6 wrote:
@xaiduz114 wrote:
@gdale6 wrote:Everyone can join the St Dept FCU most do through membership in the ACC (American Consumer Council). I would not be executing this plan you are not going to get very far Fico wise with installment loans. I would be concentrating and putting most of my efforts into obtaining revolving credit cards, I would have at least 3 bankcards to begin with and maybe a store card thrown in there. The bulk of Fico action is in revolving CCs not installments, it would be a waste of money to do what you a have outlined here IMHO.
I did not know that! I thought it was just through eligible employers you could join.
I have VERY low personal income (not even $2,000/year). My bf and I are not married yet, so I can't pool his income with mine in most CC apps as HHI... I've looked at apps, and some may allow it considering we're in a community property state, but I'm not sure, since it doesn't really specify. The main reason I was going to do these loans is to get some sort of revolving account going, and hopefully boost my score a bit while I pay collections, and then once I have better bearings I would apply for more cards. I just don't see myself being approved for many, and I don't want to waste a bunch of HPs. I got my collections knowledge down pat, but getting positive accounts gong I don't have much knowledge about. Still learning there.
Ok, you want to be going after Secured Credit Cards then not a Secured Loan, there is a big difference. Some have plowed ahead before gaining info on the difference only to find they have not helped themselves at all. its a good thing you posted this here or I fear you would have been shoved into what is called a share secured loan and that is not what you want. Always make sure you are clear you want the Secured Credit card and not the secured loan. Good luck
Oh no, I KNOW I want to go for secured cards, and I even have a few in mind. But my income is probably too low to be approved for any. The only reason I even knew about these loans is from a suggestion from someone else. Should I try and app for secured cards anyways? Like I said, I don't want to waste HPs, I'm already gonna get one from when I can open my checking account, and I will get some more when I have the down payments for secured CCs (Probably take like 3 months for each one).
@xaiduz114 wrote:
@gdale6 wrote:
@xaiduz114 wrote:
@gdale6 wrote:Everyone can join the St Dept FCU most do through membership in the ACC (American Consumer Council). I would not be executing this plan you are not going to get very far Fico wise with installment loans. I would be concentrating and putting most of my efforts into obtaining revolving credit cards, I would have at least 3 bankcards to begin with and maybe a store card thrown in there. The bulk of Fico action is in revolving CCs not installments, it would be a waste of money to do what you a have outlined here IMHO.
I did not know that! I thought it was just through eligible employers you could join.
I have VERY low personal income (not even $2,000/year). My bf and I are not married yet, so I can't pool his income with mine in most CC apps as HHI... I've looked at apps, and some may allow it considering we're in a community property state, but I'm not sure, since it doesn't really specify. The main reason I was going to do these loans is to get some sort of revolving account going, and hopefully boost my score a bit while I pay collections, and then once I have better bearings I would apply for more cards. I just don't see myself being approved for many, and I don't want to waste a bunch of HPs. I got my collections knowledge down pat, but getting positive accounts gong I don't have much knowledge about. Still learning there.
Ok, you want to be going after Secured Credit Cards then not a Secured Loan, there is a big difference. Some have plowed ahead before gaining info on the difference only to find they have not helped themselves at all. its a good thing you posted this here or I fear you would have been shoved into what is called a share secured loan and that is not what you want. Always make sure you are clear you want the Secured Credit card and not the secured loan. Good luck
Oh no, I KNOW I want to go for secured cards, and I even have a few in mind. But my income is probably too low to be approved for any. The only reason I even knew about these loans is from a suggestion from someone else. Should I try and app for secured cards anyways? Like I said, I don't want to waste HPs, I'm already gonna get one from when I can open my checking account, and I will get some more when I have the down payments for secured CCs (Probably take like 3 months for each one).
Sure I would app for the secureds thats the beauty of them, you really dont have to have a lot of income to get one as they are secured up front. If you join the SDFCU th pull to join is a SP, have the funds in the savings account prior to the app then call them to open the secured its also a sp. For other CUs I would take the chance on 1 HP to see if you will be able to get it. I would try and avoid the big banks secureds as they are going to want more of an income IMO. CUs are great for low income people and are more apt to help you out than the big banks.
@gdale6 wrote:Sure I would app for the secureds thats the beauty of them, you really dont have to have a lot of income to get one as they are secured up front. If you join the SDFCU th pull to join is a SP, have the funds in the savings account prior to the app then call them to open the secured its also a sp. For other CUs I would take the chance on 1 HP to see if you will be able to get it. I would try and avoid the big banks secureds as they are going to want more of an income IMO. CUs are great for low income people and are more apt to help you out than the big banks.
Ok, less than $2K annually enough? lol. As for SDFCU, do they require anything to open? Like $25 to open an account, or that you can't have a paid c/o reporting in chexsystems? I would love this option if I can do it.
If I revised my plan... say I join sdfcu. Save up $300-500 in my account. Get the secured card. I was also thinking 3 months later the BofA secured, because it's a card I'd like to have down the road (it graduates), and/or a First Progress secured (NOT First premier). And the FNBO Kickstart was an option, too. If nothing else worked, I was thinking OpenSky, but I really don't want to do that unless I have to. :/
Also, does the SDFCU card graduate?
@xaiduz114 wrote:
@gdale6 wrote:Sure I would app for the secureds thats the beauty of them, you really dont have to have a lot of income to get one as they are secured up front. If you join the SDFCU th pull to join is a SP, have the funds in the savings account prior to the app then call them to open the secured its also a sp. For other CUs I would take the chance on 1 HP to see if you will be able to get it. I would try and avoid the big banks secureds as they are going to want more of an income IMO. CUs are great for low income people and are more apt to help you out than the big banks.
Ok, less than $2K annually enough? For the secured it should be enough. lol. As for SDFCU, do they require anything to open? See Below Like $25 to open an account, or that you can't have a paid c/o reporting in chexsystems? I dont know if they check ChexSystems I would love this option if I can do it.
If I revised my plan... say I join sdfcu. Save up $300-500 in my account. Get the secured card. I was also thinking 3 months later the BofA secured, because it's a card I'd like to have down the road (it graduates), and/or a First Progress secured (NOT First premier). And the FNBO Kickstart was an option, too. If nothing else worked, I was thinking OpenSky, but I really don't want to do that unless I have to. :/
Also, does the SDFCU card graduate? No
SDFCU joining terms:
Regular Share Savings Account
SDFCU Savings Accounts are a safe way to store your money and start your nest egg. A deposit of only $1 is all it takes to open (and we give you that dollar). Once you open, you will begin earning dividends monthly. Dividends are calculated from the day of deposit to the day of withdrawal and are paid and compounded monthly.
I dont know about your income being enough for BoA or any other major bank secured, only thing you can do with them is try with one and if no go then I would go the CU route for all the secureds.
@gdale6 wrote:
@xaiduz114 wrote:
@gdale6 wrote:Sure I would app for the secureds thats the beauty of them, you really dont have to have a lot of income to get one as they are secured up front. If you join the SDFCU th pull to join is a SP, have the funds in the savings account prior to the app then call them to open the secured its also a sp. For other CUs I would take the chance on 1 HP to see if you will be able to get it. I would try and avoid the big banks secureds as they are going to want more of an income IMO. CUs are great for low income people and are more apt to help you out than the big banks.
Ok, less than $2K annually enough? For the secured it should be enough. lol. As for SDFCU, do they require anything to open? See Below Like $25 to open an account, or that you can't have a paid c/o reporting in chexsystems? I dont know if they check ChexSystems I would love this option if I can do it.
If I revised my plan... say I join sdfcu. Save up $300-500 in my account. Get the secured card. I was also thinking 3 months later the BofA secured, because it's a card I'd like to have down the road (it graduates), and/or a First Progress secured (NOT First premier). And the FNBO Kickstart was an option, too. If nothing else worked, I was thinking OpenSky, but I really don't want to do that unless I have to. :/
Also, does the SDFCU card graduate? No
SDFCU joining terms:
Regular Share Savings Account
SDFCU Savings Accounts are a safe way to store your money and start your nest egg. A deposit of only $1 is all it takes to open (and we give you that dollar). Once you open, you will begin earning dividends monthly. Dividends are calculated from the day of deposit to the day of withdrawal and are paid and compounded monthly.I dont know about your income being enough for BoA or any other major bank secured, only thing you can do with them is try with one and if no go then I would go the CU route for all the secureds.
Guess I'll just bookmark the app pages and try when I have the money for the secured cards then. Oh, the waiting game... haha.