Posted by Jasonrei on September 10, 2003 at 12:29:19:
First off, you want to know that they will report the tradeline to all 3 credit reporting agencies.
Whether or not it will help your credit scores depends on where you stand right now. If you have very good credit I think this might actually drop your score a little, since it will bring down the avg age of your accounts. If your credit isn’t so great this will help. Paying it off in 3 months is fine. Realize it might take 3 months before this tradeline actually shows up on your reports. You might want to do this at 2 different banks.
Lots of banks do these loans at $1000 or less, but they charge higher interest than 4%. You can certainly find one that will do smaller loans. Consider doing this at a bank you want to build a long-term relationship with.
I pretty new to creonline but remember reading something about improving your credit by putting $1000 or more into a savings account at a bank and then borrowing $1000 as a secured loan and pay it off in 3 months.
I went down to the bank today that I bank with and tried to do this. They do offer secured loans but only at a minimum of $3000 at 4% interest. The person recommended that I keep the loan for 12 months to show consistent payments and that would improve my credit scores.
I’m confused. They are running a credit check on me and will get back sometime today. I was under the impression that they did not have to look at my credit in order to do this. Should I take this loan or not? Or try another bank?
Please help if you can. I don’t want to make a mistake i will regret.