07-09-2007 09:10 PM
07-09-2007 09:50 PM
Consumer finance loans and your situation are tricky. First, it's not clear in your post why you took out the loan? Did you really need the $500? Second, are you more interested in saving $$ or improving your FICO scores? In your situation you might be able to do both.
Looking for suggestions...I took out a $500 loan at a finance company on 6/17 this year. At the time I didn't qualify for a bank loan...since most of them use TU...which is my lowest--low 600. At the time...I only had a $300 total tradeline. Now I have 4k total tradeline. I went ahead and got a BT off one of my CC and thinking about paying this finance loan off due to 43% interest..that's a joke I know. I knew once I established my credit that I would pay if off before I paid all that int. I called to get a pay-off and it will only be a little over 10% if paid now. Then again... I thought about paying like all but $20 dollars and extend it for a yr to establish more positive credit. 43% interest on $20 not a whole lot. But...my question is if finance company loans not looking good for me like peoples are saying...then what would you all suggest? I need someone that have seen some scoring difference w/ this. My scores are EQ 640 EX 632 TU low 600
07-09-2007 10:26 PM
Well alright. Consumer finance loans do not help your FICO scores like prime loans might. This is something that has irritated me for sometime. Why FICO scores consumer finance loans negatively when they don't with sub-prime CCs, especially when revolving debt and util carries considerably more weight than installment debt.
I took it out just for personal use
07-10-2007 05:42 AM - edited 07-10-2007 05:42 AM
07-10-2007 07:23 AM - edited 07-10-2007 12:43 PM
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