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Thread: Re-Building Credit (secured credit card + secured loan)

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    Default Re-Building Credit (secured credit card + secured loan)

    Anyone else go through this route? I have 2 secured credit cards and a secured loan. The secured loan has a high price of doing business with them though. I'm paying $67 a month for 36 installments (monthly) and at the end of 36 months I get about $1600. So basically I'm investing $2400 and getting $1600 back at the end of it, +getting positive payment reports to the credit bureau. Anyone else do stuff like this?

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Quote Originally Posted by StuntMan12 View Post
    So basically I'm investing $2400 and getting $1600 back at the end of it
    You pay $2400 and you end up with $1600 total?

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Quote Originally Posted by forumname View Post
    You pay $2400 and you end up with $1600 total?
    Yes. The interest I'm paying is lower if I opt out before the 3 years is up. As the guy over the phone said "the cost of doing busines" and is a rather "aggressive approach at rebuilding your credit by having an installment credit history being reported to the credit bureaus.

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    I gotta be honest, this sounds like it could be bad for you. Who was this done through?

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Quote Originally Posted by forumname View Post
    I gotta be honest, this sounds like it could be bad for you. Who was this done through?
    Refresh Financial.

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    I could have just went the cheaper route and just had a Capital One credit card (which I do have) but I am frustrated as heck with getting denied for car loans ect. Maybe I should have slowed down and thought about it some more.

    So right now I have $300 secured credit card + $200 secured credit card + this $1600 "loan".

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    A loan where you don't get the money until the end is something I have never even heard of before. You pay $800 to try to increase your credit score? Do you have a really terrible score to begin with? Did you try to get an unreserved credit card first? I believe the Canadian Tire Mastercard is good for building credit, and would be a way better option than this.

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    If you are getting denied for loans, it's because you can't afford them. A car is a depreciating asset, and it's not very wise do get a loan for one in the first place. Don't fall into their credit trap - save up and buy a car with cash. Use a credit card for expenses (but pay it off in FULL every month!), and you will build good credit that way.

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    <p>
    Quote Originally Posted by forumname View Post
    A loan where you don&#39;t get the money until the end is something I have never even heard of before. You pay $800 to try to increase your credit score? Do you have a really terrible score to begin with? Did you try to get an unreserved credit card first? I believe the Canadian Tire Mastercard is good for building credit, and would be a way better option than this.
    </p>
    <p>
    &nbsp;</p>
    <p>
    My score right now transunion is in the 580 range but equifax is more like 480 range for some reason. I just settled for one thing in my collections (close to $1000) which was hurting my score already. I applied for a Scotia credit card last night but was denied.&nbsp;</p>
    <p>
    &nbsp;</p>
    <p>
    If I apply for the Canadian Tire Mastercard, does it do a hard pull on my credit?</p>

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Quote Originally Posted by forumname View Post
    If you are getting denied for loans, it's because you can't afford them. A car is a depreciating asset, and it's not very wise do get a loan for one in the first place. Don't fall into their credit trap - save up and buy a car with cash. Use a credit card for expenses (but pay it off in FULL every month!), and you will build good credit that way.

    True. I do have enough cash to buy a decent used vehicle.

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Quote Originally Posted by StuntMan12 View Post
    True. I do have enough cash to buy a decent used vehicle.
    NEVER buy a new car. Always a year or two old with low miles. Walk into that dealership at end of month an hour before close on Friday/Saturday night. Have bought many and best deal I ever got was walking in late on Saturday night at end of month.

    Worked in the business for a short period of time. Used cars at most dealerships have tons of wiggle room as they're more profitable to dealers than new.

    Go save yourself thousands.
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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Quote Originally Posted by DzingelBarries View Post
    NEVER buy a new car. Always a year or two old with low miles. Walk into that dealership at end of month an hour before close on Friday/Saturday night. Have bought many and best deal I ever got was walking in late on Saturday night at end of month.

    Worked in the business for a short period of time. Used cars at most dealerships have tons of wiggle room as they're more profitable to dealers than new.

    Go save yourself thousands.
    Buying a 2-3 year old car from a dealership is better than buying a new one, absolutely...

    ...BUT, if you're paying up front for sketchy loans to try to improve an already bad bad credit score, you should not even look at a dealership when you drive by. You should 100% only buy a car that you can afford to pay cash for. There are plenty of decent cheap cars on Kijiji. Bring a friend who knows a lot about cars to make sure it doesn't have any major mechanical issues (even better if you already now yourself), and you're all set!

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Thanks for the responses guys. I just applied for a Triangle Mastercard with Canadian Tire and was approved on $300 credit!

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Nice! Now just make sure you pay it off IN FULL every month! That way you will build credit but you wont have to pay any interest. Win win.

    My advice would also be to get out of that loan (if you can).

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    Default Re: Re-Building Credit (secured credit card + secured loan)

    Quote Originally Posted by forumname View Post
    Nice! Now just make sure you pay it off IN FULL every month! That way you will build credit but you wont have to pay any interest. Win win.

    My advice would also be to get out of that loan (if you can).
    Thanks for your help. Now, would it be best if I just dont touch the cards at all? or should I be utilizing so much % of it?

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