Personal loan w/Cap 1 -- ? about reporting

[Anonymous]

I have 5 credit cards which I consolidated and paid off using a Capital one personal loan.  I did not close the credit cards but am not using them. 

I received an offer from Capital One for a personal loan and applied and got accepted! $7,500 (much to my surprise and my credit has a Ch. 7 from 2004, a few collections which I am getting ready to do DV letters on, and my 5 credit cards, unsecured).  So I took out the loan to pay all my balances off and repay a family debt back.  My loan terms were very reasonable for 36 months.  I don't have a car payment as my car is paid off and my house is on my husband's credit so it does not even get reported on mine.

Once I start repaying this personal loan back, will it help my credit as much as an auto loan would have?  Does anyone have any experience on these loans with capital one?  My true fico score was reporting at 585 last pull in January -- since then, I have paid everything off and then just last week got the loan.  Any idea what this will do to my credit (simulator is no longer available to me until next report comes out.)

Thanks!

[fishbjc]

Well basically you're pyramiding your debt, so I don't think you'll gain anything except peace of mind.

I plugged 10k into my simular for transferring debt and it gave me a -35 to a +5 score.  OUCH>

Message Edited by fishbjc on 03-19-2008 03:34 PM

[dragnldy]

It will be considered an installment loan similar to an auto loan.  You may take a temporary ding because of opening a new loan, but it will help your credit in the long run with good standing payment history.  But, remember, that mix of credit is only a 10% factor in your FICO scoring.  The payments and length you've been carrying them are more important.

[Anonymous]

Ok thanks -- it sounds like in the longer term, it will benefit my credit score if it does count as an installment (and it's unsecured) as long as I pay with no lates, etc.

I realize it's just basically "robbing Peter to pay Paul" but it should free up my utilization somewhat too.

Thanks for your thoughts/replies.