How to get an installment loan with bad credit?

My experian score is like a 583 and that's after a 37 point boost by opening a secured card. I have one more secured card that hasn't started reporting yet, but I'm hoping that puts me around 600. I've heard other good ways to improve your credit are through installment loans, well i know right now score is too low to get approved for one. I was thinking about doing a car title loan that would let me keep the car while repaying the loan, but the mileage on my car is too high for the model year to get accepted by any body. Does any one know of like a second chance lender that would be willing to let me borrow like $500-1000 to start a positive tradeline on my account? Also I have like 3 inquiries scheduled to fall off in october and i'd like to apply for something like a store card or something when those fall off. Any suggestions???

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  • 8 years ago
    Best Answer

    OMG...Please do NOT do the title loan or any other similar loan (payday loans & such)

    Right now, with the 2 secured cards, just use these sparingly and give them time to age. Acct age is a huge factor in your score. Store cards are also not a real good idea right now. They never ever have a good interest rate, and with your current credit situation, your rate would likely be between 25 & 30%.

    For now, the 2 secured cards are a good thing. Keep them paid up & let one show maybe a 5 or $10 balance every now & then. These cards will report to the 3 bureaus on the "statement cut date". that is when you want one of them to show a little balance every now & then. Never both!!! Then, after the statement cuts, pay it in full.

    After about 6 months of this, if you got either of these cards from YOUR bank or credit union, go in & ask them when they might be unsecured.

    I would also, maybe asap, find a local credit union to join if you don't already have one. CU's are 100% better than banks when it comes to offering credit products to those with "less than perfect" credit. Their loans have better rates, their cards have higher limits & better rates too. CU's are owned by the MEMBERS, like you & I...not by big corporations who take all the profits & "feed the pigs" in charge...like the CEO's & CFO's!

    I LOVE my credit union & they love me back!!!!

    ______________________________________

    Edit to add....I know some people will say having any kind of balance is a bad thing, BUT...to prove my point, straight from my Equifax FICO report, under the "What's Helping Your FICO Score" Heading is this:

    You've shown recent use of credit cards.

    Your FICO score evaluates your mix of credit cards [?], installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders. You helped your FICO score by showing recent use of a credit card.

    ________________________________________________________

    I rest my case!

    Source(s): Years of fixing my credit! Went from scores in the 500's in '05 to mid 700's today!!
  • Anonymous
    5 years ago

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    RE How to get an installment loan with bad credit?

    My experian score is like a 583 and that's after a 37 point boost by opening a secured card. I have one more secured card that hasn't started reporting yet, but I'm ...hiển thị thêm

  • Anonymous
    5 years ago

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    RE How to get an installment loan with bad credit?

    My experian score is like a 583 and that's after a 37 point boost by opening a secured card. I have one more secured card that hasn't started reporting yet, but I'm hoping that puts me around 600. I've heard other good ways to improve your credit are through installment loans, well i know right now score is too low to get approved for one. I was thinking about doing a car title loan that would let me keep the car while repaying the loan, but the mileage on my car is too high for the model year to get accepted by any body. Does any one know of like a second chance lender that would be willing to let me borrow like $500-1000 to start a positive tradeline on my account? Also I have like 3 inquiries scheduled to fall off in october and i'd like to apply for something like a store card or something when those fall off. Any suggestions???

  • 8 years ago

    So far you doing good just keep it up. Don't think you can get a loan with low credit score. Just give it time and don't apply for any credit for now because it will just hurt your credit.

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  • Anonymous
    5 years ago

    One thing to consider when getting a term loan is whether the interest rate is fixed or floating. A fixed interest rate means that the percentage of interest will never increase, regardless of the financial market. Low-interest periods are usually an excellent time to take out a fixed rate loan. Floating interest rates will fluctuate with the market, which can be good or bad for you depending on what happens with the global and national economy. Since some term loans last for 10 years, getting that the rate will stay consistently low is a real risk. One of the most dependable resources for individuals who want to apply for the US payday loan is the internet. There are many reputable lending institutions that offer the loans. Before you choose a particular company, ensure that you compare the fees as well as the rates of interest in order to get the best deal.

  • 8 years ago

    A second secured card will do nothing to improve credit.

    In fact, new credit reduces credit sores.

    With your current secured card, just make sure you replace the money in full each month. No games of carrying balances which can easily lower credit.

    Keep that secured card in good standing and with time, it will "turn" into a credit card. Don't apply to other cards since it will only reduce your credit. Especially if you decide to carry balances.

    You will not get a loan without collateral with this credit score.

    Sounds like you have negative items on your credit reports.

    Remember that collection agencies will sue in the future.

    They can garnish your wages and go after your assets.

    I've seen bills double once it gets to this point.

    Not time to be thinking about opening a tradeline on your account.

    Time to repair your credit so you won't get sued and time to build up a savings.

    Do not fall for the online loan scam.

    It's so easy to operate a baby could do it. They have no money to lend, they just cheat you out of your hard earned money.

  • Anonymous
    3 years ago

    I do not consider that is right

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