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Posts: 6
Registered: ‎05-08-2013
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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
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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: 754
Registered: ‎11-20-2012
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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: 19
Registered: ‎12-01-2011
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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-850 eq-836 tu-844
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Established Member
Posts: 24
Registered: ‎05-11-2013
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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)
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