Short Term Credit Help

[Anonymous]

For a while I've been considering a loan from my bank. If I get the loan and let it sit in my bank account for a month or two while paying it off fully. Would that impact the score heavily or no? I understand it would show as an account, but any idea of the score impact it would have positive or negative for the inquiry?

[Anonymous]

I've heard of people taking out secured loans to help their credit. If you don't have any installment loans on file right now (auto loans, student loans, mortgage, etc) then taking out a loan will help with your "mix" of credit, which will help with your scores.

[takeshi74]

Impact is never just about the change itself but one's credit profile as well.  Impact can vary depending on profile.

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@Anonymous wrote:

I understand it would show as an account, but any idea of the score impact it would have positive or negative for the inquiry?

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There isn't just one scoring model used by creditors and they do not all evaluate report data the same way.  One model could show one scoring impact for such a change for your credit profile and another could show a different impact.

Inquiries are a relatively small factor and not the only factor that you need to consider.  A new account will drop your AAoA (Length of Credit History).  To what degree depends on your current AAoA and how a new account would factor in.  Having a new account on your reports will also have some scoring impact.  This is about the best we can provide.  We really can't tell you that you'd see a change of X points.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

If you don't have any installments you'll see a bit of a boost to Credit Mix but you'll lose that boost when it's closed out if that's your only open installment.

Your overall financial needs and health matter more than your scores.  Certainly consider scoring impact but don't let it drive your decisions.

[RonM21]

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@takeshi74 wrote:

Impact is never just about the change itself but one's credit profile as well.  Impact can vary depending on profile.

---

@Anonymous wrote:

I understand it would show as an account, but any idea of the score impact it would have positive or negative for the inquiry?

---

There isn't just one scoring model used by creditors and they do not all evaluate report data the same way.  One model could show one scoring impact for such a change for your credit profile and another could show a different impact.

Inquiries are a relatively small factor and not the only factor that you need to consider.  A new account will drop your AAoA (Length of Credit History).  To what degree depends on your current AAoA and how a new account would factor in.  Having a new account on your reports will also have some scoring impact.  This is about the best we can provide.  We really can't tell you that you'd see a change of X points.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

If you don't have any installments you'll see a bit of a boost to Credit Mix but you'll lose that boost when it's closed out if that's your only open installment.

Your overall financial needs and health matter more than your scores.  Certainly consider scoring impact but don't let it drive your decisions.

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+1

Make the decision within reason of your means