Q&A: how many secured loans can I have open at credit union at on time?
Question by armored heart: how many secured loans can I have open at credit union at on time?
How many secured loans can I have open at once? Is there a limit?
I have one for $ 300, with $ 25 payments for next 12 months
I am adding another for $ 5000, payments of $ 90 for next 24 months
Also one of my student loans for $ 2100, payments of $ 90 for next 24 months
(Roughly, $ 200 per month to cover these 3 to build my credit.)
Is this okay? Would I still be able to open more? Or only at other places like dept stores?
Best answer:
Answer by Go with the flow
1 loan is all you need to build credit.
Make payments for 1 year.
Any more is 100% useless.
A mix of credit is 10% of your score and the same kind of loans do not change this.
A paid off loan can report positively for 10 years after it is paid off.
Do not add another loan. You simply do not need it.
It will not bring you any benefit of any kind.
It will simply be a waste of money.
You also have a student loan? Your mix of credit is just fine then.
Why do you need so much credit?
I got my first apartment without any credit.
All you need is to be financially stable with savings and income.
Do you want a car?
I got my first car without credit. (paying rent and utilties do not build credit).
I put 20% down and showed them that I had a job for a year.
Honestly, stop worrying about credit. You are really doing perfectly as is.
What do you think? Answer below!
You should have at least one credit card in that mix. Different types of credit report differently and having a mix of types improves your score faster. Get Credit Karma, it is free and useful for knowing more about your personal history and credit report. You won’t regret it, after all it is free!
Good luck!
The amount of loans you can get depends on how much collateral you have. There is no limit to how many only how much you can borrow on your collateral.
If your doing this to build up your credit rating one loan is better then multiple loans as it shows your more responsible for repayment and financially calculating your needs. Multiple loans even if they are small make it look like after thoughts.
You should combine all your loans into the one with the lowest interest and pay it off quickly that will give you a good credit rating.
You can have as many secured loans as long as you put the security to guarantee the account balance