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Registered: ‎05-23-2010
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Loan for stocks

I recently applied a recieved a loan for 7k to pay for some stocks (at a very reduced rate) from my company. I will have the loan paid off in 30 days. Will this make my credit score drop due to this being a new account? Also will my score go up when the account is paid off?
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Re: Loan for stocks

 


C-Chedda wrote:
I recently applied a recieved a loan for 7k to pay for some stocks (at a very reduced rate) from my company. I will have the loan paid off in 30 days. Will this make my credit score drop due to this being a new account? Also will my score go up when the account is paid off?

 

Hello and welcome to the forums.

 

You'll probably take a minor hit for a new inquiry and a new credit account showing up. And this will also lower of your AAoA (Average Age of Accounts).

 

Just paying it off won't raise your score back up. It will be considered a new account for about a year. After you pay it off and it is closed it will continue reporting for up to 10 years which helps your credit length history and AAoA.

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
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Re: Loan for stocks

moving to the Understanding FICO Scoring forum

Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
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Re: Loan for stocks


C-Chedda wrote:
I recently applied a recieved a loan for 7k to pay for some stocks (at a very reduced rate) from my company. I will have the loan paid off in 30 days. Will this make my credit score drop due to this being a new account? Also will my score go up when the account is paid off?

Sorry, C-Chedda,

 

Could you clarify???  Did you receive a loan from your company, or buy some stocks from your company?

I'm curious - If you took a loan out from a bank or cu that reports the loans; or if you took out a loan from a retirement fund or some such that you have with your company that would not be reporting the loan???

Just puttin' syrup on something, don't make it pancakes.
Established Member
Posts: 19
Registered: ‎05-23-2010
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Re: Loan for stocks

I

Established Member
Posts: 19
Registered: ‎05-23-2010
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Re: Loan for stocks

I borrowed the money from my companies credit union
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Posts: 4,470
Registered: ‎12-31-2008
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Re: Loan for stocks


marinevietvet wrote:  You'll probably take a minor hit for a new inquiry and a new credit account showing up. And this will also lower of your AAoA (Average Age of Accounts).

 

Just paying it off won't raise your score back up. It will be considered a new account for about a year. After you pay it off and it is closed it will continue reporting for up to 10 years which helps your credit length history and AAoA.


I agree.  It'll depend on what else is showing on your accounts. 

Just puttin' syrup on something, don't make it pancakes.
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Registered: ‎05-23-2010
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Re: Loan for stocks

I

I have a BKR discharged in 2005. I was late on my student loans 7/2007. I also has a 90 day late in 5/2009. My credit score is 624 trans and 637 equifax. I have a 200 CR with a 8 dollar balance
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Posts: 17,306
Registered: ‎07-14-2009
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Re: Loan for stocks

 


C-Chedda wrote:

I

I have a BKR discharged in 2005. I was late on my student loans 7/2007. I also has a 90 day late in 5/2009. My credit score is 624 trans and 637 equifax. I have a 200 CR with a 8 dollar balance

 

Sometimes what remains on your reports is just as crucial as what is gone. That 1 year old 90 day late is a real score killer IMO and will remain so for quite some time. How long? You'll get different opinions about that but a 90 day late is considered a major derogatory.

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

Established Member
Posts: 19
Registered: ‎05-23-2010
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Re: Loan for stocks

But shouldn't my score go up after about a year of paying my bills on time?

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