Rebuilding - Secured Card vs. Secured Loan

[Anonymous]

I am just looking for some input to help me towards my rebuild.

My only revolving account right now is a Fingerhut Freshstart card that is currently listed as an installment loan on credit report.  Will this always report as an installment loan?

I have been approved for a Capital One secured card which I'm going to activate tomorrow.  Now my question is should I do a second secured card presumably with Discover It or should I do the shared secured loan to show 2 different types on credit being used.

If fingerhut stays listed as an installment loan then I already have that covered?     I do plan on doing both eventually anyways so I can build a relationship with my credit union but as of now just trying to decide what is best.

Thanks, love the forums

[Anonymous]

1) Congrats on taking on this mission 😀

2) As I'm not a FH fan not sure how they report or if it changes again not a fan

3) Huge fan of Discover...love that idea

4) Yes, Ideally the model would like to see
3 revolvers + 1 install account
So yes ideally you want to expand on what you have

5) Ok let's look at it like this
Cap-1 is revolver A

Here's a formula to fill out your roster

Let's say you establish a $500 SSL at a CU
Take the $500 loan proceeds ( same 💰)
Use $200 to secure a Discover and
$300 to secure a Visa ( maybe at the CU or Citi/BoA)

Point is the same $500 can secure 3 TLs if you remember to start with the SSL so you can basically reuse the same funds, can't do the CC first because the money stops moving when securing the CC

IMO it's the best scenario possible because the small SSL loan payment also doubles as the low % usage needed on 1 revolving account each month

Thus 2 birds, 1 stone charge the loan payment, pay the CC get on-time credit report juice for both a loan payment and a CC payment + ultra low utilization all wrapped up in one

It's a video game, play 8-10 months and see the score

*Please be very careful with that FH account, I've seen too many it caught up buying a bunch of crap trying to 'build' credit..

Again if following my plan above one would need ZERO spend because the loan payment would show enough usage with ZERO reason to spend/buy anything on credit during our 'video game' build only stage

All the model needs to see to pump our score is a) on-time payments and b) low beautiful utilization over c) time and that's ALL we're gonna feed it for 10 months

And see what score she purrs after that 40/40 performance with great utilization and no HPs, no new credit ( 4 TLs x 10 months = 40 up 40 down) many would be surprised 😊

[Anonymous]

Love the way you laid this out.  It's almost my plan exactly. 

As for the FH account, I opened it literally the day I decided to work on my credit.  I online disputed my 6 collections and had 5 of them deleted.  Hard to believe that once I found these forums and saw how difficult it was to accomplishment!  The one collection I have left I unfortunatly am stuck with.  I'm going to save some funds and begin offering a pay for delete in a month or so.  Hopefully they bite.

The FH account will be used minimal for very small purchases.  I'm not a big spender in that sense.. That's what amazon is for.  Ha. 

Anyways major thanks for the reply!