Posted on: 02nd Aug, 2012 12:36 am
Hi there… my credit union offers a secured loan service for people building credit. They offer credit lines from $500 to $5000 at 5% APR. Now, if I open a credit line for $1K and pay it off in 6 months (there is no prepayment penalty), will this help my credit score? What do you think?
Hi Shotgun!
Welcome to forums!
You can contact the Credit Union and take out a secured loan to build your credit. However, in order to build up your credit, you will have to make the payments on time.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can contact the Credit Union and take out a secured loan to build your credit. However, in order to build up your credit, you will have to make the payments on time.
Feel free to ask if you've further queries.
Sussane
Welcome Shotgun,
I agree with what Sussane has said. You should contact the credit union and check out if they can offer you a secured loan to build your credit.
I agree with what Sussane has said. You should contact the credit union and check out if they can offer you a secured loan to build your credit.
>>What do you think?
I think it's a bad idea. Part of your credit report is related to having open tradelines for long periods of time. Canceling after 6 months defeats the purpose.
I think it's a bad idea. Part of your credit report is related to having open tradelines for long periods of time. Canceling after 6 months defeats the purpose.
Taking up the secured loan and by making regular payments, you can improve your credit score.
Just joining credit Union or credit lines from credit Union will not help in increasing your credit score. It can be raised if you get a loan and pay it back regularly.