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Nataliejonathan

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Trying to find out the name/type of Loan I read about on here Please help?
I recently read an answer to one of these questions (yes forgot to save it) on here about a type of loan that I guess is held by the bank, the lender etc. for whatever term length you agreed to, you will also be making interest payments towards that loan. At the end of the term you get to keep the loan and I believe the interest too? Or just the loan not too sure, but read it be beneficial for your credit score. I am trying to get to 650-700 by the end of the year. Currently at 612. I have a personal loan and 2 credit cards, 1 open collections and a charge off.

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I really don't know what you are talking about but I believe you may be speaking of "Secured Loans". But, if you already have an installment loan that is reported to all three credit bureaus then adding another one really isn't going to be a huge help. What can you do about the Open Collection? Can you afford to pay it off if it is not going to fall off in the next couple of years? Have you read about "pay for delete agreements"? Have you read about the FDCPA (fair debt collection practices act) to make sure the collector is not breaking the law in any way? Do you follow your FICO scores too?

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You need to understand how credit works and reading the articles here plus using the financial tools can be a big help.  I know because they helped me.  You need to get that collection account taken care of as quickly as possible.  The charge-off, however, may need time until it falls off, and it will adversely affect your credit score.  You may not be able to reach your desired score as quickly as you want, but understanding credit will be a fantastic benefit for the rest of your life!

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You don't need another loan

you need more available credit. 

First priority should be getting the open collection taken care of, With that on your report no one will give you a new loan.  After the collection is taken care of your score should get a little boost, then apply for a new credit card.  You need to raise your available credit with out raising your debt. 

A new loan has interest built into it, Debt, A credit card has no interest if paid on time every month. hence raising your score at no new cost to you.

Good luck

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