Discover 5.0 Superior rating?

[Anonymous]

I just got a notice from Discover that I got a 5.0 Superior Rating from them, allowing me to apply for a Discover debt-consolidation loan.

Has anyone else get this? It says you COULD get a 8.99% interest rate loan, not necessarily for debt-consolidation. I called and they said from 8.99 to 18.99 were the rates. 

Just curious if anyone knows anything more. Some of you will remember my posts about doing a 1-year sabbatical, and a loan might really help. Any thoughts?

Thanks.

[Anonymous]

I've gotten a few of these too.  I'm not sure that the 5.0 rating means much.  I get the feeling that its just a marketing thing.

Remember that personal loans like this usually aren't so good for fico scores, but if you need the loan, then maybe its a good idea for you.

Personally, I would visit a CU first and see what they can offer. 

[Anonymous]

Does a personal loan hurt you as bad as credit card debt? Worse than auto loan debt?

[creditwherecreditisdue]

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@Anonymous wrote:
Does a personal loan hurt you as bad as credit card debt? Worse than auto loan debt?

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If it is a consumer finance loan it is bad for the credit report.

However, I am pretty sure the loans from DFS are regular installment loans, just like your auto loan (except the DFS loans are unsecured). If you used one to consolidate your CC debt into an installment loan it would actually be great for your credit report as long as: 1) you made all the payments on time and 2) did not run your CC's right back up after you paid them out of the loan. If I was app'ing for the loan, however, I would make up some other reason for asking for it and not tell them in was for debt consolidation. Tell them you want to take a trip to Brazil.

[Anonymous]

I would actually use it to finance a sabbatical -  all the time being unpaid but still under permanent contract (I'm a teacher.)I don't have any CC debt anymore.

Can anyone tell me the difference between a consumer finance loan and a regular installment loan? 

Thanks!