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Easy Way to Raise FICO Score


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1. Open a secured loan with your bank. Pay half off before 1st payment is due. Pay another half when 2nd payment is due. Pay the rest in 4 equal payments. This is an easy way to move your score up from 20-50 points in a few months.

2. Open 2nd secured loan with different bank. Do same as above.

3. Open 3rd secured loan with different bank. Do as above

Here is how it works:

You would take your money and put it in either a savings or money market fund. Then you secure the loan with that. The bank will then give you a check for the amount of the loan. You take that check and put in your checking account or whatever account you pay bills from. Set up online banking. My credit union lets me make transphers to any of my accounts online 24/7 for free. So, say you take out the loan for 1500.00, you will put 1500.00 into your checking. After one week, you will transpher 750.00 to the loan balance as a payment. That would be your first payment. Now a week or two before the second payment is due, you would pay 375.00 to the balance. After this you will pay 93.75 a month for four months. Of course your payment will need to be a bit more depending on what they charge for interest. My cu charged 6%. It cost me less than 5.00 to do this. My new cu that I joined is offereing 4% on secured loans.

I borrowed $1200.00 for 12 months @ 6%. My payments were 103.00 a month. My score lost 18 points when it hit the reports. I had only paid 200.00 for the first payment like a dummy. After the second payment hit (I paid all but 100.00 by then) my score got the 18 back plus 11 points. I had just a few things deleted over the last two months, my score has gone from 555 to 641. I have two cc's that I owe and keep the balances under 25% now. Between the 2 cc's and the secured installment my score is slowly going up.

Ask your credit union or bank if they report to all 3 bureaus or not. Then call around to a few different cu's and banks in your area and find out the same. You can do it with either a new bank or your own, it should not make a difference. Using your own cu or bank will be better cause it gets a good loan record going with them. After they see you make good on a few loans they will be more apt to help you further with unsecured loans than other places.

That my friends is how to get a secured loan to work for you. Of course if you have enough money (most banks require 500-750 to do a secured loan) you can do this two or three times at the same time. It should give you a nice boost in your credit score after 2-3 months.

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  • 2 weeks later...

ha ha sis,

how do i pay half off before the 1 st payment, then half for the second payment, then the rest 4 equal parts?

i gotchya!!!

actually i think i am going to try this, but i can only join 2 credit unions here!!!

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It already raised my scores, I opened mine in March. I have a closed FP card that gives maybe 3 points a month when the payment hits, and an open hhbk that gives about 5 points a month when it hits. My experian score when from 491 to 668. It was 491 in April, by the begining of July it was 668. I wanna say I gained a good fourty points from the installment loan. That was just watching my fako credit expert score, when i got my real fico, it was 668.

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0804..Interesting name!

I told the lady in my bank what my scheme was and she said it works. Although she was a little out there! She said that it will help but she also told me my FICO would raise by adding my Fiancee to my checking account! WTF! So I left. I took the app for a secured loan. I'd like to do this unsecured with our house coming up and probably being poor for a while with each blind costing $167 a piece and ther being about 20 windows in the joint! Cripsies... Anywhoot... I personally think they don't care( Loan Officers ) and sometimes tell you some interesting crap about themselves and thier credit. :shock:

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You are so on target with that Edubb. My loan officer actually told me to do the secured loan. I had 2500 sittin in a money market, another 2000 sittin in my savings doin nothing. It couldn't have been a better time, if I had not done my secured loan, the creditor for my judgment would have taken every single penny of it a week later. But because it was frozen with a loan they couldn't touch it. She told me all about her life and how she had to rebuild before, and now they are building a new house and they just drone on and on about credit and ways to improve it. It works, thats all you need to worry about. Every bank or cu has some type of secured loan. Don't worry about them knowing its to rebuild. They have these loans in place just for this purpose. They want you to rebuild and then come back and borrow on your own. They make more money off you that way.

Edubb, did she really think that adding someone to your checking would really raise your FICO? Even the lenders need to get educated huh?

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She Really thought that. I let her go on it. i said " How can that be they won't pull her credit, will they?" and acted real dumb. I was dying inside!!! OH CRAP! These are the people who love to say NO to people but they have no clue about credit. Just a card that says if you have X amount of lates in the past 2 years and your score must be this or higher to get approved. A FREAK'IN monkey can be an officer at my bank. It's a upper level credit union they say! Bulls-h-i-t! My GF worked there and that's how we met. They pay thier tellers like 6$ an hour. These poor people are so nice and are busy all day! there's 10,000 people on our site every business day and they almost all have accounts there. You figure it out. ESPECIALLY payday! WOW! Oh well... that's my tangent for the day.

L8R

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  • 1 year later...

Not sure if I will get a reply, since this post is ages old but how has the success been with this technique, if you have a moment could you let me know what you did in a nutshell, some open up 3 some only 1?? How did you pay it, did you try variations, did it change the score for the better or worse etc..? :D

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  • 2 weeks later...
  • 1 month later...

$300 would be enough as a credit limit.

There will be a slight drop early on. Since new credit is always considered risky, FICO takes that into account - then add the hard inquiry (if any).

If you keep a low balance (7% to 30% of the credit limit) and make payments on time, you should start to see that increase in a few months.

All this is assuming your CU reports secured cards to the CRA's...

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$300 would be enough as a credit limit.

There will be a slight drop early on. Since new credit is always considered risky, FICO takes that into account - then add the hard inquiry (if any).

If you keep a low balance (7% to 30% of the credit limit) and make payments on time, you should start to see that increase in a few months.

All this is assuming your CU reports secured cards to the CRA's...

Thank you for this advice. I just called them and they said that they report to all 3 CRAs, but they do flag it as secured.

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  • 3 weeks later...

When you make the payment does not matter to the creditors or our credit report, if you are over 30 days on a payment that is when you will get a negative. Other than that as long as the payments are on time the only thing you can control is the utilization, which oviously you know as it had been mentioned can effect our scores.

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Hey what bank did you use??? I live here in Los Angeles and I would like to do the same thing. My very good friend did this when he was 18, he got one loan then took the cash to another bank and did it a couple more times just like that. His scores are now near 800

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  • 2 weeks later...
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