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Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
0

The thing about that score is that they ding you if you d...

The thing about that score is that they ding you if you dont have OPEN installment loans.  I didn't see adecrease on the FICO score if that helps.  Actually I went to the bank first.  The minimum they give is 10k for personal loans.  I have no desie to open a loan of that magnitude.  Otherwise they refer you to a finance company with much higher rates than I saw on that site.  I have LOTS of avail credit on my cars.  Just no open install ments.
 
I did the app and let them pull the Plus and immediately checked to make sure it was a soft (I still have a good disute open with EX)  I got the B rating but still making up my mind,  I'll take the lowest rate they have which was less than BOFA was offering on a personal line of credit.
New Visitor
Cooper
Posts: 2
Registered: ‎04-17-2007
0

Re: installment loans

Good morning!
 
I'm not sure what City you live in.  However, in Chicago, you can go to LaSalle Bank and take out a Dreams Begin loan that reports like an installment loan.  It truly helps your credit score.  It helped mine!
Valued Member
clarrkkent
Posts: 34
Registered: ‎04-26-2007
0

Re: The thing about that score is that they ding you if you d...

Old thread, but I have a suggestion. I've never taken a personal loan from a bank, so I'm not sure if it would work.
 
 I know you don't want a 10K loan. If you believe you could qualify, then as a last resort you could take the 10K in funds. As your first payment use 9K of the funds...leaving you with just a 1000.00 of principal + the interest accrued for the first month.  Or use some other combination.
 
If you have the discipline, pull from the remaining loan funds to make payments each month. All it would cost you is the interest accrued each month.
 
Of course watch out for a prepayment penalty and like I said....discipline not to spend any of the loan.
 
 
2012 - EQ 785

2010 - EQ 680
2007 - EQ 630
2006 - EQ 600
Moderator Emeritus
masdeocho
Posts: 2,050
Registered: ‎04-17-2007
0

Re: The thing about that score is that they ding you if you d...

IMHO:
 
1.  FICO isn't really saying that your score is lower because you don't have an installment loan.  It's saying that it might be higher if you did.  There is a difference.
 
2.  I personally think it's senseless to take out a loan just because you think it *may* improve your credit score.
 
3.  Taking on new debt could be a negative factor in a potential lender's eyes, because you've increased your debt obligations.  They compare your salary to your monthly debt payments (this ratio is not part of your FICO score) and won't lend you more if they think you're overextended.
 
4.  I know prosper.com says they report to the CRAs; does anyone have evidence that they do in fact report?  To all 3 CRAs?  With complete and correct info?  How do they handle disputed info?
 
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Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.

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