Jesseti:
These kind of secured loans are great at building up credit. There are two very important things to remember though;
A) Never borrow more that what you can pay back in one lump sum
B) Never use more than 30% of your available credit
So with saying that, you will have an account with $2,500 in it. if you can comfortably pay back $750 each month to the account, go for it! ($750 is the most you can borrow, 30%)
Especially in dealing with a loan of this size, if you dont pay it all back at the end of every month, the interest is going to be herendous! On your OWN money!
Plus, by only using 30% and paying that off every month, it will build your credit quickly because it shows that you dont need to use the whole balance and that you are able to pay it off. i would go for it if you can trust yourself not to spend more a month than you can pay back.
|