delighted4 Posted June 20, 2005 Report Share Posted June 20, 2005 I went to the credit union to get a secured loan, but the lady told me that a secured card would be better. What do you think? I told her I would be back after I made my decision. Now I need your advice. Link to comment Share on other sites More sharing options...
Methuss Posted June 20, 2005 Report Share Posted June 20, 2005 Depends upon how much you are talking about.A secured loan means you are securing it with property, a secured card is guaranteed with cash (such as a savings account). Most lenders want collateral equal to the amount of cash being lent. It almost seems silly when you are taking out a loan because you need cash to secure it with cash. Link to comment Share on other sites More sharing options...
delighted4 Posted June 20, 2005 Author Report Share Posted June 20, 2005 The reason why I inquired about a secure loan is I heard it increases your credit scores. You take your money and put it in a money market fund or savings acct. Apparently the bank/ credit union will give you a check for the amount of the loan. You take the check and put it into your checking account. After 1 week, you pay 1/2 of the loan. A week or 2 before the next payment is due, you pay about 25% of what you owe. Then you spread out the remaining payments over a 4 month spread. This is suppose to increase your scores. Link to comment Share on other sites More sharing options...
Methuss Posted June 21, 2005 Report Share Posted June 21, 2005 Yes. That is one way to get a good account record on your reports. The caveat is you must be disciplined enough not to spend the funds rather than use them to pay back the note. Some people do this then get themselves into a situation where they end up spending it to pay off something else. Link to comment Share on other sites More sharing options...
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