Oct
19

Can a savings secured loan help improve my credit score?

By
secured loan

I appreciate everyone that uses their time to answer my question. Thank you all in advance. Now, I have kinda o.k. credit, but it could be better. I have a few thousand dollars that I can use, and I thought “why not put it into a savings account and then get a savings secured loan against it? That way, I could show on my credit report that I can make payments on time.” Does this sound like a good idea to any of you? If you would, please tell me the how and why this will work, or not work. And how it is that you came about the answer you gave. Thanks so much.

Dustin

Sell House Quick

Categories : secured loan

2 Comments

1

Yes Dustin this will improve your standing on your credit report. it will show that you are responsible and reliable. you only need to use a small loan though like $500. pay on time every month. You mentioned that your credit is ok right now. if you want to improve your standing take care of any outstanding debts you have as well. this will increase your score as well. Go to Myfreecredit report.com if you need to review your credit. you are allowed three a year, one from each major credit reporting agency.

2

It will IF the bank reports to the credit reporting agencies. Before you apply for the loan it would be good to check with them if they do actually report. If they do you should get at least a $500 loan, but a good start is between $500 and $2000. Also, don’t pay it off right away. You will need to make about 12 payments before it really starts to help.

Also one correction to the previous answer. In order to get your free credit report you need to go to . This is the only site that is mandated by the government. All of the others will actually try to sign you up for services and charge you money.

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