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Will this help?

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Established Member

Will this help?

So I am looking to get back on track with my credit.  GW letters have gone out to Citi and Target (both had lates in 2007).  I have a couple of credit cards that I have almost paid off, about $700 left.  I have never had a loan report to my CR.  If I were to take out a personal loan, place it into a saings account, and then pay it off using the loan itself would it help to improve my credit score?  I know I would have to pay the interest out of pocket, but if it would raisfe my score significantly it may be worth it. It may be worth it even if it's just a minor bump in score if it helps get auto loans or martgages later on down the line.

 

Not looking to do this until my cards are paid down.  Just throwing it out for some feedback.


Starting Score: TU: 655 EQ: 701 (12/2010)
Current Score:TU: 673 EQ: 701 EX: 675 (2/2011)
Goal Score: TU: 720 EQ: 750 EX:720


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Community Leader
Epic Contributor

Re: Will this help?

Probably an option worth considering.

Immediate score increase probably wont be significant.

It would reduce your revolving % util, and improve your mix of credit.   However, it  would add a new inquiry, and would reduce your average age of accounts (AAoA).

It is a tradeoff.

 

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