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Attaining a personal loan.. what happens to my score?

New Visitor

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
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Established Member

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
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