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10-02-2012 10:12 AM
I applied for a refinance for my 2 homes. I have tentatively been pre-approved for the refi but am still waiting for the underwriter to give final approval and move to closing. During this time, I applied and was approved for an installment loan for a attic retro-fit and solar water heater installation for one of the homes. I don't pay for the work until the installation has been completed. My question is, how long will it take for the installment loan to show up on my CR once I give the loan check to the installer and they cash it with the bank that loaned me the money? I don't want to jeopardize my refi by adding a new credit account before I close on my refinance.
10-02-2012 10:35 AM
Once the installment loan is finalized, it will show up on your credit report whether nor not the check is cashed. When it will show up depends on the time that bank/creditor reports. If I were you, I would have waited until the refi was a done deal. Good luck!
10-02-2012 11:45 AM
The way the installment loan is set up, if I change my mind and don't have the work on the home done then the loan is canceled. Or, if I don't get the work done by December 15th, then the loan is automatically canceled and I would have to re-apply for another loan after that date. The amount of the loan is $6400.00. Also, I applied for the refi after I applied for the installment loan. According to my mortgage lender, we expect to receive a closing date any day now. I just don't want the installment loan to show up on my CR until I've closed on the refi, so I'm holding off on them coming to do the work until I close on the refi. I guess I just want to know what the lag time is from the time I have the work done and when the installment account shows up on my CR. I figure it has to be at least a couple of weeks to a month, but I don't know for sure.
10-03-2012 01:30 PM
It may take weeks or months to show up on your credit report once they establish the loan (which they probably haven't until you actually have the work performed as they haven't extended any credit to you); and also some of those installment loans such as you're suggesting if they're underwritten by the companies themselves may not report at all.
Since the refi close is any day now, I'd just drag my feet on the other loans anyway but even if you went ahead with them right now it's probably not a concern honestly. Sure, would've made more sense to have waited, but it's not a big deal in this case in pretty much every statistically relevant scenario.