Reply
Valued Contributor
rootpooty
Posts: 1,711
Registered: ‎10-28-2011

Re: installment loan


pizzadude wrote:

BCF wrote:

pizzadude wrote:

 

Can you share some additional information about your credit profile ?   Any negatives or derogatory accounts ?    What is your average age of accounts ( AAoA ) ?


no negative. oldest account 20 month. AAoA 14 month. FICOs are between 740 and 750


Looks like you are in great shape with your FICO® scores, honestly I don't think that you need to do anything right now other than let your accounts age with positive payment history.

if your planning on building a relationship with a cu then yes an installment loan would help you for relationship purposes but if the sole purpose is to score boost it wouldnt be worth it. if your trying to be borderline 800's on the score it might take several years of paying your bills on time for that to happen

NFCU plat 5k | NAVCHECK 5k | NFCU cashrewards 3k | BOFA 123 3k |
Chase Freedom 1.5k | Amazon 1800 | Walmart 1450 | Buckle 300

On the prowl for Chase Sapphire Preferred!
Established Contributor
Lasardo
Posts: 738
Registered: ‎04-26-2012

Re: installment loan

BCF, So glad you asked the question. I got a CD that can start at 1k up to 5k. It is .44% of the amount/payments .it shows as an installment loan. Let me explain.. For example: you can put 44 dollars a month into a savings account (CD)..at 2 years the funds are available to you and it shows up on your credit report as an installment loan. I went with 2k (88 a month) it shows positive (green) on my report as an $2000 installment loan and boosted my score 17 points immediately. I have just started paying on it so as long as I keep my payments on time it will continue to increase my score. I am curious how much my score will increases once I atually start payments. I have only found one bank that does it but you may want to ask around. I love the fact that I have savings while improving my credit at the same time. If you want the information I will pm it to you. Good luck.
CS 728- 01/13 from 554-12/11
Goal: 800
Regular Contributor
BCF
Posts: 120
Registered: ‎05-27-2012

Re: installment loan

Can you give me the name of that bank. I have never heard of CD that reports to credit bureaus.

Wallet: AMEX Blue Cash Preferred 5k; BofA Visa CashRewards 5k; BofA 1-2-3 MasterCard 4.4k; Citi TY Premier 2.5k; AMEX HHonors 3.5k, Chase Marriott 5k, Barclays US Airways 2.5k, Kohl's 300
Moderator
Revelate
Posts: 8,322
Registered: ‎12-30-2011

Re: installment loan


BCF wrote:

Can you give me the name of that bank. I have never heard of CD that reports to credit bureaus.


Sounds funny.  May be more to it.

 

Anyway since I fall firmly in the camp of getting installment loans on a report for just about anyone, I simply did a secured CD loan with USAA.  Effective interest rate of 2%.

 

Likewise I got a decent boost, though I had an auto loan hit around hte same time too.  With your scores, YMMV, wouldn't be surprised if it's a short-term negative but longer term it'd be nothing but goodness if you don't have an auto or mortgage loan (or other installment loan) already on there.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Established Contributor
Lasardo
Posts: 738
Registered: ‎04-26-2012

Re: installment loan

It sounds like any local bank may offer this..never the less I sent the info to you.
CS 728- 01/13 from 554-12/11
Goal: 800
Blogger
FrugalRican
Posts: 2,876
Registered: ‎02-02-2012

Re: installment loan

If you can get a CD-secured loan, then it might be worth it.

Otherwise, you might as well get a credit card with an annual fee.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Established Contributor
Lasardo
Posts: 738
Registered: ‎04-26-2012

Re: installment loan

I earn intest off my CD and do not pay fees plus I save $$ while improving my credit score
CS 728- 01/13 from 554-12/11
Goal: 800
Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: installment loan

I did this in 2007 through chase bank. It paved the way for a mortgage in 2008. My chase banker recommended this. He also got me a freedom card with a small limit.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Established Contributor
Lasardo
Posts: 738
Registered: ‎04-26-2012

Re: installment loan

Just received a email that my score has increased to 644 from 554. I have removed several negative items from my report, I have been added as an AU on one card (30 points) and have now been paying for 1 month on my CD. I think once I continue with these on time payments (auto w/d) I should see more of an improvement. Hope this information helps. Good luck
CS 728- 01/13 from 554-12/11
Goal: 800

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+