Third line of credit...

[RBisDebtFree]

As I mentioned in my other threads, after discharge I obtained a credit card and an auto loan. However, I keep being told that I need 3-4 line of credit if we want to get a mortgage in the future (we might if it'll make sense) -- I heard this from this board, other boards, loan officers, mortgage brokers, friends in credit repair business, etc...

So it doesn't seem like I can get approved anywhere for another CC, at least, unsecured ones. I have two options:
1) Get a $500 secured CC from the same CU where my auto loan is from -- though I don't like the idea of putting $500 and not knowing when you'll get it back
2) Make a loan out to myself -- at least, that's how I call it -- another CU where I am a member lets me put X amount of money into my savings account and then get a loan for that amount of money. Let's say I deposit $100, then I get a loan for $100, my $100 are back in my pocket, my $100 in savings is locked and I have a $100 loan. This loan makes me feel like I am getting fooled but it seems fine, after all, the CU is charging me 2-3% interest rate on my own money. Also, if I do like a $300 loan, will that even help my credit...

Can you tell me what you think? Should I go with either one or both of these options? Should I just wait 6-12 months to start getting offers in the mail?

Your advice and point of view will be greatly appreciated, thank you!

[Intoodeep80]

That exactly what I did...

I acquired 3 unsecured CC's after discharge (Orchard Bank, Credit One, Hooters), AND went to my CU and got a 'secured loan' @ 4.25% for 1 year against some of my savings.. in my case I used $800.

I make a payment each month to the CU, and it goes right back into my savings account, thus 'unlocking' that money for me.

It reports to all 3 credit bureaus. I just checked my experian, and it posted today that I made my 1st payment on 11-14. Alittle slow reporting, but not too shabby! My TU score went up 40 points this past month. Assuming it was from all of the positive payment history(s) I have going.

Best of luck!

[RBisDebtFree]

Thank you so much! I just went ahead and applied for the Credit One card, they annual membership fee is pretty high but I don't mind paying it for my credit repair. I got approved for $200, that's great! Do you know if you can add a secondary account holder? I want to add my wife and rebuild hers credit history as well.

So what would you recommend? Should I just open up that secured loan from my CU or would you open both a secured CC and a secured loan?

Your advice is greatly appreciated!

[RBisDebtFree]

I had to cancel my Credit One application as they did not allow to add my wife. Well, I guess I will just take on that secured CC and a loan...

[Logan]

would wait 6 months and then apply for a CC. I wouldn't be in such a big hurry to get crappy terms.

Logan

[RBisDebtFree]

So far, I got great terms on all of my credit accounts but I agree with what you're saying! Also, the secured CC my CU offers is no annual fee for life (I bet they can still change it but for now it is zero) and the secured loan ends up being at 1.5-2% so I don't think those are bad terms.

I am trying to get all the rebuilding tools in place now and then just keep paying for them and not have to come back to the subject of credit rebuilding in a long time... hopefully, I'll be able to do it!