New Member
Posts: 6
Registered: ‎05-08-2013

Installment Loans for 19 Year Old

[ Edited ]

I have been working on my credit for the last year or so. I am a student who makes about $18,000-$20,000 a year. I currently have a Bank of America Credit Card with a credit limit of $1,200 and a Discover It for Students with a $1,500. My credit card utiliazation is 5% and 100% on time payment paid in full every time, and have only one credit inquiry. 


I am looking to help build my score up and considering an installment loan of some sort. I am curious as to my options for finding a loan. I am not looking for anything with a high balance, just something to help build credit worthiness. 


Also I want to add my plans for this loan would be solely to build credit, I will pay on it for 6-8 months and pay it off. I am not worried about not being able to afford it as I will not be taking out one more than my liquid assets which about $15,000. 

New Member
Posts: 4
Registered: ‎05-05-2013

Re: Installment Loans for 19 Year Old


In my opinion keep on doing what you are doing and you will build a excellent history. Why take out a loan and pay interest for an increase in credit score that you wont need right now. You already ahead of most and i am jealous as a fellow student who makes half of what you make.

Established Contributor
Posts: 640
Registered: ‎11-20-2012

Re: Installment Loans for 19 Year Old

You really don't need it, but you could look into a Credit Builder-type loan from a CU. It's basically an installment loan where the payments go into a savings account or CD that you can't withdraw from until the loan period is over. You make the payments, it reports to the CRA's, and at the end you get the CD or savings account. It can be a score booster.

Established Member
Posts: 13
Registered: ‎12-01-2011

Re: Installment Loans for 19 Year Old

Hello Jmbeebe0722,  You might consider taking out a student loan for one semester (assuming you're not currently).  Or if you are using student loans, another one that you'll start paying off immediately.  Shop around for a good rate and itemize your taxes to recoup any interest burden.   Among the benefits would be a longer active tradeline.

Starting Score: eq-757 tu-713 (nov 2011)
Current Score: ex-837 eq-809 tu-791
Goal Score: 840

Take the FICO Fitness Challenge
Posts: 19
Registered: ‎05-11-2013

Re: Installment Loans for 19 Year Old

How long have you had those two cards? What is your credit score?

Starting Score: Eq 745 TU 740 (05/11/2013)
Current Score: Eq 745 TU 740
Goal Score: 800

Take the myFICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+