Use Discover or Installment Loan?

txmomma26 · ‎05-07-2013

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

webhopper · ‎05-07-2013

@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

FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!

Rain77 · ‎05-07-2013

+1

Last HP 8/29/14

thom02099 · ‎05-07-2013

@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.

boomhower · ‎05-07-2013

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.