bank loans

[pjwife27]

I'm thinking about trying to take out a small loan (maybe 500?) just for the sole purpose of having something other than credit cards on my report. Is this stupid? And, I dont work so do you think they'd even consider me and take into consideration DH's income w/o adding him on?
Not sure they'd even approve me with my scores, but I've been with BofA for ten years and been very loyal with them. Do they even care about that anymore, since BofA is such a large bank.

[Xanathos]

Simple stuff, PJ. That's how I got started once my reports were cleaned up. You walk into a bank and you say "I want to take out a secured loan for $1000"(I've found they all recommend 1k. They say "What's your security?" You say "$1000".

They can do this kind of loan where they "loan" you $1000, and put it in a locked savings account, and you make payments on the "loan". When you pay it off, you've got a savings account with a grand in it, and some good tradeline.

[pjwife27]

Ahha!! Thanks Xan!

[DHK]

Another idea along the same lines:

Take your $1,000. Go to bank A. Put it down on a secured loan and borrow $1,000.

Take that $1,000. Go to bank B. Put IT down on a secured loan and borrow $1,000.

You can usually keep doing it as often as you like.

I've heard that you should keep each loan open for at least 6 months, then pay it off in full. (At least the TL ages a little and you don't pay as much interest.)

[Plathw]

This sounds like a good idea, but why do they do this for you? I mean, you have $1000....why would they loan you your own money?

[DHK]

First, they make money on the interest! Banks are in business to make money.

Second, this is a great way for people to start rebuilding their credit worthiness (as long as the loan reports to the CRAs).

Third, banks need to protect themselves. By putting $1,000 down, you are supplying the security.

You get a positive tradeline, they get some interest. Everyone's happy!

[pjwife27]

Another idea along the same lines:

Take your $1,000. Go to bank A. Put it down on a secured loan and borrow $1,000.

Take that $1,000. Go to bank B. Put IT down on a secured loan and borrow $1,000.

You can usually keep doing it as often as you like.

I've heard that you should keep each loan open for at least 6 months, then pay it off in full. (At least the TL ages a little and you don't pay as much interest.)

[pjwife27]

Another idea along the same lines:

Take your $1,000. Go to bank A. Put it down on a secured loan and borrow $1,000.

Take that $1,000. Go to bank B. Put IT down on a secured loan and borrow $1,000.

You can usually keep doing it as often as you like.

I've heard that you should keep each loan open for at least 6 months, then pay it off in full. (At least the TL ages a little and you don't pay as much interest.)

Good idea also. Do all banks make secured loans like that-BofA hopefully being one of them?

[DHK]

If BofA offers them, it's not on their website.

However, Wells Fargo offers them for a loan OR line of credit. (Minimum $3k for loan; $10k for line of credit - secured by a CD)

http://www.wellsfargo.com/per/loans_credit/rates/index.jhtml;jsessionid=BX0QGTTMVKLF0CSYCIRE2UQKBRK UMUM0

The best bet could be DCU - you could get a secured loan, use the funds and get a secured visa - with the same funds!

http://www.dcu.org/loans_visa/index.html

(Go to "Stock and Savings - Secured Loans")

I'll try to look up more CU options as Major banks either may or may not offer them - and if they do - they have higher amounts to put down on a secured loan than $1k.

[USARMY]

I was going to do the same thing with the banks and found most were 1k, but then someone suggested Credit Unions I found 3 in my area that do secured loans anywhere from $300-$500.

[Waxworks]

Good idea also. Do all banks make secured loans like that-BofA hopefully being one of them?

B of A does give them out. This area banks dont like to advertise so openly. Fleet does not advertise but I got me a loan, paid it off. Also, B of A and Fleet are getting married. Sometime the merger will be complete this year.


Just food for thought