Score Bump? Paying Down Installment Loan

[Anonymous]

As part of my rebuilding strategy I took the $3,500 that I had to pay off collections and used a chunk of it to take out a secured personal loan with Wells Fargo.  I used the proceeds to pay the collections and get them deleted. It's a 3-year term at 8.74% and the payments ar $97 mo.  It helped my score since I now have a blend of credit types.  I've made 4 payment so far and am at approximately 93% of original loan amount.

My question is about my next strategic move....at what point do you get the next credit bump on an installment loan?  Is their a magic % of original balance (80% or 66% or ?) In which the FICO models give you a favorable bump?  

Trying to plot my next moves and am looking for enlightenment.   Anyone have personal experience with this?  

Thanks in advance.

[CH-7-Mission-Accomplished]

There are extensive current discussions about this on this site.  You need to search for them.

If this is a loan secured by your own cash, you are getting a very bad deal.  Share secured loans right now are offered by credit unions for about 3%.  If you think about it, auto loans are going for 2% right now, and a loan secured by cash is much better security so should be no higher.

See discussions about using Alliant Credit Union and State Dept FCU.

[Anonymous]

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@CH-7-Mission-Accomplished wrote:

There are extensive current discussions about this on this site.  You need to search for them.

If this is a loan secured by your own cash, you are getting a very bad deal.  Share secured loans right now are offered by credit unions for about 3%.  If you think about it, auto loans are going for 2% right now, and a loan secured by cash is much better security so should be no higher.

See discussions about using Alliant Credit Union and State Dept FCU.

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I agree completely - 8.74% for secured is TERRIBLE. You're paying over $25 a month interest, vs $8 per month through SDFCU. Close that turkey ASAP, and open a small $500 loan through SDFCU for credit mix purposes. Pay it down to under 10% and then just let it ride for the next couple of years.