Fingerhut question?

[Anonymous]

Everything I read about fresh start says to pay it off in 3 months and get your revolving account, but if I already have my 3 revolvers, wouldn't I be better off leaving it as an installment loan as long as I can? I have only one installment loan, past and present, in my file, so I wouldn't think it'd be best to milk this as long as possible... right?

[gdale6]

---

@Anonymous wrote:

Everything I read about fresh start says to pay it off in 3 months and get your revolving account, but if I already have my 3 revolvers, wouldn't I be better off leaving it as an installment loan as long as I can? I have only one installment loan, past and present, in my file, so I wouldn't think it'd be best to milk this as long as possible... right?

---

Personally I would not want to pay interest longer than is necessary. 3 cards is only the minimum you need the top number is however many you feel comfortable with managing. It isnt wise to have installment debt just for Fico score purposes and I would upgrade the account ASAP. Have a great day

[Anonymous]

Bro I don't think there is interest, the amount I'm paying matches the original purchase price. Which takes me back to my original point, that I'd probably be better off using it as an installment than trading it for a 400 dollar limit card

[Anonymous]

Oh they do charge you interest. For sure. Your payments will match what they tell you it'll be when you buy but they charge interest every month until you pay it off. Fresh Start interest rate is pretty high, too - 24.99% I believe.

They want to know you can pay monthly so you have to pay it for a few months, but after 3-4 months I would pay it off (it's what I did myself).

[Anonymous]

I've made 2 payments and so far I've paid about 2 dollars more than the purchase price, if I'm adding this shiznit right

[Anonymous]

It really does depend how it's coded on your credit report. If it's an unsecured loan, then having a balance and paying it off monthly looks good and builds a different type of credit than revolving accounts. However, if it's a line of credit akin to a credit card, then it's not really like a loan, and carrying a balance can be seen as a sign of irresponsible fiscal behavior. So you need to ask yourself what the APR is, how much carrying a balance will cost you, and whether this will severely dent yuor utilization. Your credit scores aren't too bad but the amount of credit you have is terribly low, which means carrying any balance will likely reflect over 10% of total utilization, which can also dent your score.

[Anonymous]

1. It's coded as an installment loan, if it was a revolving account I wouldn't even be asking this question.
2. Those numbers in my signature haven't been updated in a while. The amount I owe is like 55 bucks. It's figured into my total debt but not into my UTI