Cash out on car to help credit good idea?

[zaidnasouri]

Hello, I am slowly still building my credit, it's going good.I'm thinking about taking cash out on my car that I own worth 20k, and make monthly installments. Also, would this show up on a my credit report as secured?

I have an 8k secured credit card

I have about 6 bad accounts left

I have 1 judgement owned by Hunt and Henrequiez (Bunch of Donkeys) almost paid off.

I know I'd be losing the interest, but I am hoping this will boost my credit up.

[myjourney]

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@zaidnasouri wrote:

Hello, I am slowly still building my credit, it's going good.I'm thinking about taking cash out on my car that I own worth 20k, and make monthly installments. Also, would this show up on a my credit report as secured?

I have an 8k secured credit card

I have about 6 bad accounts left

I have 1 judgement owned by Hunt and Henrequiez (Bunch of Donkeys) almost paid off.

I know I'd be losing the interest, but I am hoping this will boost my credit up.

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Welcome to the forum

What other credit do you have other than the 8k secured card? 

That alone is good so I'm wondering why you want or need another TL that will result in paying INT%?

If you need another TL I suggest another secured card or a TL via the shopping cart trick but only what you would in fact use

[zaidnasouri]

Thank you for the response. I only have a 500 dollar capital one card. I was told an installment payment like this would help more than another secured CC. Plus I also heard having secured cards will show up as secured on your credit report.

Also, what is the shopping cart trick?

[guiness56]

Installment loans actually do very little for your score other than credit mix and that is only about 10%.

Revolving credit would do your score more good.  Most secured cards report as a normal CC.  There are only a few that don't.

Shopping cart trick is for mostly Comenity bank cards.  You have to be opted in with the CRAs.  Go to a place like Victoria's Secret and put things in your shopping cart.  It is possible it will come up and say you are approved for a certain amount of credit.  It will be a soft pull.

[myjourney]

Have you checked your CR's to see how the 8k secured card is reporting? I'm willing to bet it does not say secured but revolving or charge.

That and the Cap1 would be enough with time to increase score and establish a positive history of payments while increasing AAoA.

[zaidnasouri]

Thanks a bunch. Under Experian, my Wells Fargo secured card show up as secured credit card. Equifax and Transunion show up as Revolving or Option and Revolving account.

[myjourney]

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@zaidnasouri wrote:

Thanks a bunch. Under Experian, my Wells Fargo secured card show up as secured credit card. Equifax and Transunion show up as Revolving or Option and Revolving account.

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Surprised by the EX reporting seeing how it's reporting as unsecured on the other 2 CB's 

Either way you are good to build a positive credit history

How long have you had the cards both WF and CAP1? 

[zaidnasouri]

10 months

[myjourney]

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@zaidnasouri wrote:

10 months

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Your doing a wonderful job

If the baddie that your paying off is your only one and depending of were scores are in 2 months IMHO I would app unsecured cards such as:

Walmart  620+

Discover 650+

Cap1 620+ 

At that point you will be showing 12 months of history which will help in the approval process

EDIT just saw you have 6 baddies when I reviewed what are they and how much

[zaidnasouri]

Smaller credit cards in collections aging at least 3 years back. $300-$1500