cancel
Showing results for 
Search instead for 
Did you mean: 

Use Discover or Installment Loan?

Regular Contributor

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
Message 1 of 5
4 REPLIES
Moderator Emeritus

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 Smiley Very Happy


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Message 2 of 5
Frequent Contributor

Re: Use Discover or Installment Loan?

+1



Last HP 8/29/14

Message 3 of 5
Valued Contributor

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. 

EX = 849 EQ = 850 TU = 850 as of 07/2017
Retired and Retiring Cards!
Message 4 of 5
Valued Contributor

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. 

Message 5 of 5