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How will a 4 month TL look on my CR?


sonny75
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Hello. Thanks for all the info. I have just started being an adult. I am trying to clean up the credit mess I made as a college student. All three of my scores are in the mid 500"s. Thanks to you guys i have just gotten some of my negatives deleted just by disputing!! I have sent DV letters for the rest. I called EQ about my inq's and they deleted them right then and there! TU took half of my inq's off after a month, I played dumb and asked if there was a special group that handles fraud, they transferred me, they put a fraud alert, then boom they were gone. EX are a differnt story as far as inq's.

Ok, here's my deal. I am trying to add some good accounts to my files. I was thinking about getting a 4 month $1000 cd thru Wash-Mut then getting a loan off it. My Wash-Mut rep said i could do this twice, then i would have 2 bank loans on my file. 2 bank installent loans that will be payed off after 4 months.

My question is this. Is estabishling a TL for only 4 months gonna do any good? Is it too short? Do bank installment loans look better than credit cards?

Thanks in advance for your help.

Scores:

5/2006

tu 423 ex 509 eq 487

7/2006

tu 548 ex 529 eq 551

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Why not go for a longer term? I've gone this route twice, for 5 years and 3 years. I was glad to have the loan reporting all that time, and remember the longer you keep a TL open, 1) the longer it will stay on your report after it's closed and 2) the more it will continue to boost your scores with its increasing age and payment history.

You'll want to get a couple of credit cards as well.

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Why not go for a longer term? I've gone this route twice, for 5 years and 3 years. I was glad to have the loan reporting all that time, and remember the longer you keep a TL open, 1) the longer it will stay on your report after it's closed and 2) the more it will continue to boost your scores with its increasing age and payment history.

You'll want to get a couple of credit cards as well.

I've thought about doing this as well..

In the next few months, we will be rolling over profit sharing (over 10K) into a dream fund CD at our bank(for a down payment on house we are planning on buying in 6/08).

So after the CD is open, we should be able to get a loan through the bank using the CD as collateral?

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Better double check the info that you got from Wash Mutual. If you get a cd and take a loan against it, Washington Mutual will not report it to any of the cra's so it is a waste of time for you. I have a friend who is pretty high up in Washington Mutual and we were just talking about this subject the other day.

Just trying to help and to make sure if you do something you will reap the benfits and in this case I dont think you will.

Good luck with everything!

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I've done it twice. The interest you pay on the loan is offset by the interest you make on the CD, which is much of the beauty of it.

Agree to have the loan payments taken out of your checking account automatically, and they'll usually lop off another .25% or so off the loan interest rate, too.;)

Just make sure your bank will report the loan.

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RoadBack, I have done this twice. The loans are still on my CRs to this day, and the matured CD in the first instance helped me through a period of unemployment.

The first time I did it with Chase, the second time with a smaller local bank.

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Like I said in my last post, I did this with Chase and a local bank (not a credit union). I've never banked with WaMu. Perhaps different banks just have different policies... I guess you'll have to just ask around.

JC, I changed "my" picture to aggravate Determined1, who is a Yankee fan. :twisted:

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