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Established Member
bkny
Posts: 10
Registered: ‎03-24-2007

installment loans

According to my fico scores and credit history report it was suggested to raise  my scores that I should have an installment loan reporting to credit agencies. My scores range mid 500's. I really don't want a car (live in city) and not ready for a mortgage yet (maybe in another year) I already have a cc w/limit of $300.00. Does anyone know what banks would give me a small loan even with a high interest rate? And when I say small I mean no more than $1,500.
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007

Unfortunatlely, I understand your predicament.  Unfortuna...

Unfortunatlely, I understand your predicament.  Unfortunately, most banks don't do small loans and will refer you to a consumer finance company.  Finance company reporting will hurt your score, so don't so it.  If you are a ember of acrdit union, their loan limits may be somewhat smaller
AJ
New Member
AJ
Posts: 12
Registered: ‎04-06-2007

Finance companies?

Do you mean companies like HFC and Wells Fargo?
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007

I know beneficialis considered a fiance company.  I have...

I know beneficialis considered a fiance company.  I have a couple of finance companies on my report after bk thinking it wuold help improve my credit but when I pull my report, its in the top three of baddies.  too many CF loans.  The average consumer doesn't have any.
Frequent Contributor
nikkoslilmouse
Posts: 259
Registered: ‎03-13-2007

bkny you should check out Prosper for a loan

I know of a site you should visit. it is www.prosper.com it is really neat and you can borrow anywhere between 1000.00 to 25000.00. It is people to people lending so you will have a better chance of getting a loan than you would from a bank and catch this, its free to join and they bid on your instrest rate and by this I mean they bid down the interest rate. I joined not long ago and the group on there I joined was "Got money will bid and the group leader cloud9 has helped us out a great deal. We have put in for a 6000.00 loan and he has bid on it for us so far and we just listed our loan today. We still have a litte more to go but I hope we get it. We will find out in 10 day when the bidding is over. Its worth a chance and you dont pay anything unless you get the loan and then the fee is taken from your loan like I put in for 6000.00 so I my fee would be 120.00 that they would take right from that. If you need any help just let me know you can email me here. I am a fico subscriber. Oh yea and they do report to the credit bureaus as well. Good Luck.
Established Member
bkny
Posts: 10
Registered: ‎03-24-2007

I have tried prosper and they said that  my experian plus...

I have tried prosper and they said that  my experian plus score was too low. I guess I will have to ride it out until I am able to get a mortgage in a year or so. Besides when I talked to a loan officer at HFC they wouldn't tell me what was the lowest fico score they have seen. So I opted out on applying for the loan because I didn't want a hard inquiry on my report. Thanks for all the help. If anyone has any other ideas please let me know.
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007

Great concept



nikkoslilmouse wrote:
I know of a site you should visit. it is www.prosper.com it is really neat and you can borrow anywhere between 1000.00 to 25000.00. It is people to people lending so you will have a better chance of getting a loan than you would from a bank and catch this, its free to join and they bid on your instrest rate and by this I mean they bid down the interest rate. I joined not long ago and the group on there I joined was "Got money will bid and the group leader cloud9 has helped us out a great deal. We have put in for a 6000.00 loan and he has bid on it for us so far and we just listed our loan today. We still have a litte more to go but I hope we get it. We will find out in 10 day when the bidding is over. Its worth a chance and you dont pay anything unless you get the loan and then the fee is taken from your loan like I put in for 6000.00 so I my fee would be 120.00 that they would take right from that. If you need any help just let me know you can email me here. I am a fico subscriber. Oh yea and they do report to the credit bureaus as well. Good Luck.


 
Great concept!! Especially helpful to know that they are associated with Wells Fargo.  What do your credit grades have to look like to get a good rate? O really need an installment loan on my report

Established Member
Nuggy
Posts: 18
Registered: ‎03-15-2007

Interesting. When my FC account was reported paid and clo...



Brammy wrote:
Unfortunatlely, I understand your predicament. Unfortunately, most banks don't do small loans and will refer you to a consumer finance company. Finance company reporting will hurt your score, so don't so it. If you are a ember of acrdit union, their loan limits may be somewhat smaller





Interesting. When my FC account was reported paid and closed by experian, my FAKO actually dropped 10 points. (this was with WFF, and it reported as an installment account.) The account was only about a year old, and nothing else had changed on my report (I keep very close records of each report I pull, and do line-by-line comparisons to help me understand what changed and its effect on my score). There were no late payments at all on it.

Will be interesting to see what happens to my actual fico when that payoff reaches EQ.
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007

Ditto



Nuggy wrote:


Brammy wrote:
Unfortunatlely, I understand your predicament. Unfortunately, most banks don't do small loans and will refer you to a consumer finance company. Finance company reporting will hurt your score, so don't so it. If you are a ember of acrdit union, their loan limits may be somewhat smaller





Interesting. When my FC account was reported paid and closed by experian, my FAKO actually dropped 10 points. (this was with WFF, and it reported as an installment account.) The account was only about a year old, and nothing else had changed on my report (I keep very close records of each report I pull, and do line-by-line comparisons to help me understand what changed and its effect on my score). There were no late payments at all on it.

Will be interesting to see what happens to my actual fico when that payoff reaches EQ.

 
Same thing here.  Says no installment loans opened.  I decided I wasn' going to go out and buy a new car so I went to a couple of banks but I already have enough avail credit on my cards and dont need 10k.  I really wish some others with experience with Prosper would chime in.  I checked it out adn its very interesting.
Established Member
Nuggy
Posts: 18
Registered: ‎03-15-2007

I do have other installment loans on mine.. I have an aut...

I do have other installment loans on mine.. I have an auto loan, another auto loan and a boat loan that were paid 3 and 1 year ago respectively, and another FC loan from CitiFinancial that was reported paid a month or so, but didn't have any impact on my score at all when it reported the payoff / closure.

As for prosper... Though I've not actually received a loan from them, I looked into it, even going as far as creating account, whereby they pull your credit score and assign you a grade that is reported to potential borrowers when they view your request. (Note that this is a SOFT pull... it doesn't create a hard inquiry unless your loan is actually FUNDED, so it doesn't even hurt to put in a request.)

The one thing to watch out for is the rate caps for your state. There are some states such as mine that cap interest rates at a low enough figure that it would be very difficult to find enough people willing to give funds to your loan request at that interest rate cap if you have sub-prime credit. But there were only a handful of states that this could come into play; most of them cap out near or well beyond what you'd expect for a rate.

You bring up a good point though: People should be aware that it's not just the interest they pay; they also pay a fee to prosper up front. So even though you might get a 5k loan, you only receive about 4850, but you're still paying interest on, and repaying, the full 5k, which bumps up your true APR a tad.

A lot of what I saw on there was either people looking for funding for new businesses or investment type stuff, or individuals who, after reading - or trying to, anyway - their stories, even though they report C or even B credit, any smart lender wouldn't touch them with a ten foot pole. And apparently a lot of lenders feel the same... many of these people indicate that they are re-listing or trying again because their first attempt didn't receive enough funding bids.

As a borrower, heck... you really have nothing to lose, if you don't mind paying prosper their percentage off the top and paying high interest rates. It's great for those with sub-par credit, because it gives the borrower an opportunity to tell their story and explain their situation, and the borrowers don't just see a score and say yes or no... it's the individuals who say yes I will bid some money for your loan or no I won't... not an underwriter's computer. But if you have prime credit, it seemed you could get better interest rates at your local bank or credit union, and without paying the juice off the top.

Yes, their docs say that they report to the credit bureaus, as well as some pretty hefty fees if you're late on a payment.

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