unsecured credit lines
Question
Will this work to raise credit score?
my credit score is like 450, I just paid off in full 6 debt collectors. All that is left that i owe is my car which is 5 months from being paid off in full. The collections will remain on my credit report for another 5 or so years before they drop off, in the mean time I want to know if this will work to raise my credit score. Take out 10 loans for the minimum amount the bank offers. I understand the bank would not give me an unsecured loan because of my poor credit, so I would be using a secured loan, where i give them the money first in my savings account, so they have zero risk of not being paid back. Now to do this I would have to open 9 more savings accounts, and get a secured loan on each one, I'm thinking $100 per loan, so $1000 total. Paid off over as long as they let me. I realize this will drop my score down even further to start, but years down the line, it will show that I made payments on time to 10 loans, for years. I'm asking on yahoo to get your opinions because when I talked to my bank, the 2 people I talked to were both lying to me, and trying to push a credit card on me non-stop. The reason I know they were lying is because first they said you cannot have more than one savings account at a time, which I know to be a lie, because my mother has 3 savings accounts under her name at the same bank. And second they kept saying the amount I wanted to do the loan for wasn't meeting the minimum, but when I called the loan office it turns out there is no minimum, only a maximum.
2 months ago - 7 answers
Best Answer
Chosen by Asker
Sorry, a bad plan. Banks don't do that. You need to start disputing all those paid collection and the unpaid ones too. That will help your score
by carl.bennet
2 months ago
Asker's Rating: 
Other Answers
Banks do not work that way. You could withdraw the money - there is no security there.
by Rick B- 2 months ago
Taking out 10 loans is ridiculous and not sure that would even help your situation. I just borrowed against my savings account at my credit union as a secure share loan for 12 months at 4.25%. I did this last Monday, and when I checked my credit reports today it was already reporting to all 3!! Bonus! I would start with 1 loan. Thats 1 = one. From what Ive heard, it will raise your credit score in no time, but patience is the key. Try and get an orchard bank or credit one credit card. They give credit to people with no/little/bad credit. That will help also. My credit score went from 417 to 630 in 6 months because of my Orchard Bank card.
by technologic80- 2 months ago
Wow reading your question made me dizzy! Do not take 10 loans out, number one it is crazy to think that a bank will loan you $100.00 and let you pay it off in "years". Number two, well it's justtttttttttttttt irrational! Here's what you do, go to the bank open a savings account with $1000.00, get the loan, set the payments term of the loan as 12 months. Take the money the bank gives you and put it in your checking account in order to repay the loan.
by Dixie Darlin'- 2 months ago
That won't raise your credit score at all. In fact no bank or any kind of lending institution would lend you only a small amount and the standard is no more than 2 loans at a time. Especially with a low credit score already. Your best bet would be to get a secured savings account, get your name on a loan for something with a co-signer like your mom. If you apply for a store card like Best Buy then you can buy something small like a music CD and charge it. Pay it off when you get the bill. That way you will raise your score and get back on track. Credit is a very scary thing to mess up. Jobs judge you by your credit and so do banks, pretty much everyone out there. Be careful not to over spend or you will get into serious debt trouble.
by MonaLISAme- 2 months ago
Instead of all that convoluted bank loan stuff, just get a secured credit card -- you pay a deposit which is held as collateral against the line of credit. Use the card for small purchases and pay it in full every month. In a year, you should be able to get a regular credit card and convert the secured card to a regular account. Use both cards and pay in full every month. You need at least 24 months of consistent, on time payment history to even begin to offset all those derogatory items. By the way, banks do have minimums on loan amounts and terms. $100 is way below the minimum. Also, installment loans need to be at least 12 months to count in your credit score.
by bdancer222- 2 months ago
Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one - credit-report-score.10001mb.com
by Sam- 2 months ago