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Regular Contributor
txmomma26
Posts: 246
Registered: ‎02-27-2013
0

Use Discover or Installment Loan?

I have a fairly new Discover It with a $1500 CL.  Turns out I'm going to have to help my dentist put shoes on her kids or buy a pool or something to the tune of about $750. I've got 2 options for financing and wanted some opinions from the FICO community.

 

#1 - I have a smile brands installment credit line with a $4,000 limit. Interest is in the 15%-20% range depending on finance length (6 mos-24 mos) if I don't pay it off within 6 months.


#2 - I have my shiny Discover with 0% interest until June 2014.  It would severely increase my utilization (sitting at about 6% overall right now with $5900 overall CL), but since I have no plans to app or purchase anything and my TLs need some time to age and inqs need to fade........the smallish hit from increased util won't hurt too much.

 

What do you guys think?

Start: (2-26): EQ 602 (Myfico) TU 579 (Credit Karma) EX 634 FAKO
Current: (7-12): EQ 690(myfico) WalmartTU 696 EX 689 (lender 6-3)
1st Goal: 680 across the board - DONE June 2013!
2nd Goal: 725 across the board
Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
0

Re: Use Discover or Installment Loan?


txmomma26 wrote:

I have a fairly new Discover It with a $1500 CL.  Turns out I'm going to have to help my dentist put shoes on her kids or buy a pool or something to the tune of about $750. I've got 2 options for financing and wanted some opinions from the FICO community.

 

#1 - I have a smile brands installment credit line with a $4,000 limit. Interest is in the 15%-20% range depending on finance length (6 mos-24 mos) if I don't pay it off within 6 months.


#2 - I have my shiny Discover with 0% interest until June 2014.  It would severely increase my utilization (sitting at about 6% overall right now with $5900 overall CL), but since I have no plans to app or purchase anything and my TLs need some time to age and inqs need to fade........the smallish hit from increased util won't hurt too much.

 

What do you guys think?


Use the discover card :smileyvery-happy:


Starting Score: 08/29/2011 TU 671 EQ 674
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Frequent Contributor
Rain77
Posts: 328
Registered: ‎02-24-2012
0

Re: Use Discover or Installment Loan?

+1



Last HP 8/29/14

Valued Contributor
thom02099
Posts: 1,326
Registered: ‎08-30-2011
0

Re: Use Discover or Installment Loan?


Rain77 wrote:

+1


+1 more!  If it were a significantly higher amount being charged, then exploring other options would be encouraged.   Since you're not applying for anything in the near future and $750 should be relatively easy and quick to pay off, that certainly makes more sense!  And when it's paid off you'll likely see a bit of a bounce in your scores. 

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 768 EQ = 828 TU = 834 - June/2014
Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Use Discover or Installment Loan?

Since you have no plans to appy for anything I'd just use the DIscover and get the little bit of cash back while still paying 0% interest. 


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