@ezdriver wrote:
@myjourney wrote:
@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.
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
I have see this statement often enough that I will comment on it here.
Having a good credit score and having a healthy credit profile are not one and the same. A good score alone will not qualify you for a home mortgage for example. A home mortgage underwriter is looking for multiple and mixed trade lines as well other things such as payment history, utilizations, DTI ratios etc. A single tradeline is called "thin credit" which is not a good thing generally. It is natural to be "gun shy" about seeking/using credit for folks lie us who have run int problems. However, I suggest that folks be realistic about the health of their overall credit profile and not just the scores.
When rebuilding it takes small steps and time to go from a thin file to a thick file and in this case OP has 2 good TL's
I agree that a good healthy mix is to be achieved in the long run but it's not an overnight process....
In this case you take an 8k card which when seen by other lenders. Will show on CR's except one as a CC with solid history
and combine that with the 500 CC TL and now OP has 2 good TL's not to mention the paid auto that might have been financed.
With good history over the course of the next 6-9 months while working on CR's OP can add 2 more CC's if not more.
Perhaps next year OP is in need of an installment loan (car) which in fico scoring is only a 10% factor
The year after that may lead to that mortgage you spoke of, if not sooner.....
Point is credit is not a sprint but a marathon thus thick files can only be built over time by 1 approval at a time