Attaining a personal loan.. what happens to my score?
So I talked to some creditors about getting an auto loan for a salvage titled car and they basically told me to take a hike... lenders simply will not finance a salvage title no matter the circumstances that led to that car being listed as a ST in the first place. So I was thinking that I would try and get a "personal loan" through some low-credit lenders... ex: credit.com to pay for the car. Now this is all speculative and I really have not decided to do it. Before I make any decisions, I wanted to know what this would do to my credit score. I was looking 'Score Simulator" but it did not have an option for a personal loan. Would a personal loan be the same thing as "a new credit card" with the balance being the loan amount? In which case getting the loan would raise my score? Thanks, Chad
Re: Attaining a personal loan.. what happens to my score?
A personal loan includes both secured loans (auto, boat, etc) and unsecured loans. The difference being the "secure" loan has collateral that "secures" it; whereas the "unsecured" loan has no collateral.
I would think your credit score would do the same for an unsecured personal loan as it would for a secured auto loan.
It is only the poor who pay cash, and that not from virtue, but because they are refused credit. - Anatole France