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@Anonymous wrote:
@Anonymous, I have a credit score of 775, about $800 in c/c debt, and I am wanting to to buy a new refrigerator and sofa for about $2500 total. Is it worth it to get a $5000 personal loan @$156/ month for 36 months? Can I use the difference to pay off the loan sooner. I currently have no car payment, and pay close to $100+ in minimum payments on the c/c bills. I also don't have that many accts. on my credit report (5). So, I'm hoping a new line will help my score. Just a little scared to pull the trigger. Any advice guys?
I wouldn't if I were you.
If you really want an installment loan just to pad your credit mix, do it with a small share secured loan. (Join Alliant Credit Union, take out a $500+ savings account, take out a $500 share secured loan secured by the savings account with a 48 or 60 month term, decline or cancel autopay, transfer $455 from the savings account towards the loan balance bringing the balance down to $45. Pay that off slowly over the balance of the term. Once the $45 balance reports the positive effects will be felt. On the downside, you will be getting a new account, which has a slightly negative effect on your scores.)
BTW making minimum payments on your credit cards isn't good for your scores or banking relationship; you should pay them down.
A few questions/points:
Not sure there is much to gain for having a credit score above 775. looks like the interest rate on this loan is about 9%. I wouldn't
I think you should concentrate on looking for what is the lowest interest rate and save you the most money. Looking for a loan to increase your score when your at 775 (If this is a FICO 08 Score) is not really helpful. Your not going to see any benefit from creditors having an 800 vs a 775.
That said with your score, and saving money is the goal. I think you should get a 0% credit card on purchases and balance transfers and use that to move your credit card debt to and pay for your new purchases. This will get you to a point where you are paying no interest and can put all your money towards principal. Once you are paid off, you should then look at taking out a SSL just to add to your credit mix. See link below.
http://www.doctorofcredit.com/strengthen-credit-installment-loan-using-secured-loan-technique/