New Visitor
Posts: 2
Registered: ‎07-11-2007

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: 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
Established Member
Posts: 52
Registered: ‎07-10-2007

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

FICO Scores (1/6/13): EX 642 and TU 670

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+