Too many accounts?

[Anonymous]

When I first began trying to get my credit back in track a few years ago, I went to a small loan place in town that does loans. The way it works, is you start on level 1 and as you pay and gain credit with them, they will gradually increase your loan amount. They also allow you to refinance every so often. Each time you refinance it shows on your credit that the one loan was paid and a new loan was open. Thinking this will help establish my credit, I've been doing this for a little over 2 years. As a result I have 12 paid accounts/never late with them on my CR and 1 open with high limit of $1225. My limit began at $275.

My question is, will having this many accounts with the same company over and over hurt my credit more than help it? Should I try sending a GW letter and having them stop reporting a few of the loans?

Thanks.

[Anonymous]

All you are really doing is building installment loan history. 1 loan would have been enough to start building your credit. Unless you have a reason for continuing this practice I would see about using your money in other ways. Do you have any other credit TLs on your reports? Any bad ones?

[Anonymous]

I have 2 other installment loans. Both are in good standing, 1- 30 day late payment a year ago on one of them. I have a paid auto loan. Was paid almost 2 years ago, but had several late payments. I do have some small collections that I am going to try PFD on. My scores are mid-high 500's. Figured I'd get the collections removed if I could and then apply for a few CC.

The reason I ask if that is too many is because someone told me that it makes it look like I can't pay my bills and have to keep getting loans to do so.

This isn't the case. I usually open the loan, pay  a few months, then PIF and start over. I was going on the advice of the loan company at the time.

Message Edited by sidewinder on 09-07-2007 09:45 PM

[Anonymous]

I started where you are in Jan. I got a 1st Premier BS card with a $250. A card like this will cost you some $ but it builds your revolving credit and you need a variety of credit to help rebuild your scores. Within a couple months while you are working on the collections, you should be able to find a couple better cards that will help you as well. I've opened 9 accounts this year. I know it's alot but my scores are all now 657, 671 and 669. It wasn't just from new cards but having some new TLs to help balance out some of the 3-4 year old bad accounts has helped me to recover quicker. I suggest you move on to at least one cc and go from there.

[Anonymous]

CC and length of credit history count more toward scores then any other loans. Almost everyone shops at Target and Wal-mart....try for these cards...they have no fees. You might only get CL $200  but it's better then nothing & NO FEES...wal-mart  try for just the wal mart card NOT the wal-mart discover. again no fees...If scores are ok for them they might give you a walmart discover without asking. I asked for just walmart & got walmart discover CL $2500  DH got CL $4000

Do not run the cards up  use  a few times & PIF. when they show on account....sock drawer them and wait a few months & watch scores. As scores come up apply for a better CC. Do it slow 

Message Edited by HappyDays on 09-08-2007 03:14 PM

[Anonymous]

OMG  i am so glad I caught that spelling error   hahahahha  I would have been banned from site forever!!!

[fused]

Hmmmm...did I see it?

[Anonymous]

Sidewinder.  This sounds like a Finance company.  If so stop getting loans now as those types of loans actually HURT your score.  Crazy huh?  Have you pulled a ScoreWatch report?  Consumer Finance company loans definitely bring your scores down.  One of the top reasons I am given that my score are not higher.  That along with a BK

[fused]

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sidewinder wrote:

When I first began trying to get my credit back in track a few years ago, I went to a small loan place in town that does loans. The way it works, is you start on level 1 and as you pay and gain credit with them, they will gradually increase your loan amount. They also allow you to refinance every so often. Each time you refinance it shows on your credit that the one loan was paid and a new loan was open. Thinking this will help establish my credit, I've been doing this for a little over 2 years. As a result I have 12 paid accounts/never late with them on my CR and 1 open with high limit of $1225. My limit began at $275.

My question is, will having this many accounts with the same company over and over hurt my credit more than help it? Should I try sending a GW letter and having them stop reporting a few of the loans?

Thanks.

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As long as all of these installments are in good standing there is no reason to ask for their removal. I don't care if they are prime loans or not. Good standing means good standing. I agree with others on adding some more CCs to your credit mix. Do you know all three of your FICO scores? Maybe we can recommend some CCs for ya.

[Anonymous]

Sidewinder

Here is a quote from the top three reasons that my score is what it is.  Keep in mind this is my longest history but the lowest score. Even thouh I have derog student loan information reporting onthe other two.  From your description it seems these are the same types of loans you are talking about.  I don't think its fair that a loan paid as agreed can hurt your score nut there you have it.  BTW the one with more recent student loan derogs but without these typesof loans and a good deal shorter history is over 40 points higher than this one.  Equifax also has an additionl 10k student loan PIF.  They do damage, I can't stress that enough

You have a consumer finance account on your credit report.
According to your credit file, you have 7 consumer finance company loans. Only 12% of FICO High Achievers have a consumer finance account. Wow had to edit that out it actually pulled up my credit report..lol
Why does this matter?	Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit. The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes. What to do about this: You should try to stay current with all of your payments and avoid opening any new credit accounts that you don't need.

Message Edited by Brammy on 09-08-2007 06:26 PM

Message Edited by Brammy on 09-08-2007 06:30 PM