Well, I really screwed up my credit in my 20's and now I have the task of repairing it. In the last two years I have had no negative trade lines, paid off my auto loan in perfect standing, a judgement immediately and just recently paid off all my collections. I've never filed bnkrpty or or had an eviction. I now hold a 570 fico score and am trying to improve it. I currently have no credit cards and am having a hard time being approved for one. My plan is to purchase two 1yr $500 certificate of deposits and take out loans against them ( the finance charge is about the same as the interest so I should come out about even) and obtain 1 secured credit card for $300. what do you think?
You might want to investigate further whether taking out loans against your own money is a wise idea. I'm not sure that would help improve your rating. I would also make sure any secured cc you get reports to the credit bureaus, many do not. Again, that would not help elevate your score. A secured card is another form of borrowing against your own money since you a required to maintain a deposit as a security . Be sure you are not required to pay outrageous fees in advance for a secured card. There are many predatory credit card issuers out there. If you find yourself having to pay up hundreds or even thousands for a secured card, just walk away.
Yes, that is a very good start.
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