Reply
New Member
Posts: 2
Registered: ‎01-06-2013
0

Using a personal loan company to build a credit history.

I'm new to the credit game and I'm in the process of getting all of my details for my history as of now but I know it's not a good picture so far.  What I am curious to know is using a company like "Sun Loan" a good idea to build a recent credit history.  It's basically one of those places that offers high interest small personal loans, I believe it would be reported as an installment loan even though the amount is very low and I fully understand I'm going to pay for the privilege of doing this.  I'm aware of going the secured card route and I'm almost certainly going to go that route however I'd like to keep my HP's to a minimum and I didn't realize it was such an issue to have that on my CR and I have recently done a few and one of them was from this Sun Loan company so I thought maybe I should just take advantage of the HP and just do a small loan.

 

My other issue is this, is having something like this on my CR going to look bad in the future if I actually take advantage of this very high interest loan to other companies?  I keep hearing about how people say it wont matter because at the end of the day its history etc but then people bring up the good point of an actual person looking at it and seeing it and thinking "risk."  I have to admit, if I was looking at a CR and saw that, I would think the same thing too.

 

Another avenue I'm going to try and use at one point I did have a small unsecured CC through a local bank, after the recession in 07 I lost my job and wasn't able to continue to make my payments and eventually they closed that account and I ended up paying it off entirely, I was thinking about possibly going into the bank and talking to someone about seeing if they would give me another chance if I would start a secured card with them with the condition that they at least backdate my new secured card to the date of my old one.  Any thoughts?

Moderator
Posts: 13,571
Registered: ‎04-15-2011
0

Re: Using a personal loan company to build a credit history.

I would stay clear of this.  Just me personally.  High interest rate, doesn't look good on your CR and a secured revolv would do so much more.  Installment loans aren't scored nearly as high.



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.