Getting a loan from a credit union is a great way to improve credit.

Discussion in 'Financial Planning' started by Jea, Jun 17, 2016.

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  1. Jea

    Jea New Member

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    A retired financial advisor gave me tips on how I can improve my credit. There's credit unions that can help you get $1,000 loan with a payback of $50 a month or $5,000 for $100 monthly payback. You can get these loans even if you have bad credit.

    Every time you pay back on time, this goes on your credit and improves your score. Keep at it for a year and you'll see a significant increase.

    Try googling local credit unions and give them a call to hear about their services!
  2. Endure

    Endure Expert Member

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    What a neat idea for financial planning. Credit unions are co-operative financial organizations that accept deposits and give out loans. They are set up by people with common interests, such as where they live or work, and offer low-interest loans, savings and sometimes bank account. The thing is, that People who save or borrow through one must have a common bond. That means they may live in the same area, work for the same employer or have the same profession. They can also be members of the same church or trade union. They are run on a ‘not for profit’ basis. Instead of paying a profit to shareholders, they use money they make to reward their members and improve their services. They can be large or small; some have thousands of members while others are much smaller, therefore loans are more limited. Credit unions act in the interests of all members and so try to ensure they don’t let their members take out loans they cannot payback by assessing their income and, in some cases, how much they’ve been able to save. I would suggest to take small loans (no more than 10000$) only to finance your investments and not for leisure spendings.
  3. hades_leae

    hades_leae Active Member

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    That significant increase is not likely. Is it supposed to be an increase of something like 20 or 60 points because as soon as you get an increase, it's highly likely that it will drop back down easily from other faulty obligations, then that year of work did not pay off. Your just further in debt, don't get a loan to make your credit better, unless you actually need the loan.

    These companies are not needed, you can manage your own credit. If you have delinquent accounts "Very bad", go on credit websites and find those debt collectors that hold your account, and make deals with them. They just want you to pay something, it doesn't matter if you have good credit added towards your overall score. You could have worked your way back up to a credit score of 700, but as soon as you get one delinquent account again, your score could drop 130 points just like that. That loan that your paying on wouldn't matter at all towards your score. The bad effects your credit way more heavily and quicker than the good.
  4. lonewolf

    lonewolf Moderator Staff Member

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    its still a loan whatever you want to call it. now if somebody was going to teach people how to live within their means I'd be more impressed, but I suppose that's old fashioned these days.
  5. willywonka

    willywonka Member

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    My parents have an account at a local credit union and they got a loan because my step-dad has amazing credit. I wonder if I'll be able to get an account there too. I have some bad credit right now and could use a few fixer uppers here and there.
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