topic Re: Amex Personal Loan Payback Question? in Personal Finance

Amex Personal Loan Payback Question?

jcc332006 — Sat, 09 Sep 2023 04:59:36 GMT

Hello Credit Gurus!

I was a approved a $15,000 Amex Personal Loan and looking to pay it back before it hits my credit report. I just received the funds 2 days ago on 09/06 into my bank account.

My question is would I be able to use My bank account on file with Amex to push the ACH Loan payment back and it wouldnt be a problem? Or would this not be acceptable to AMEX? It would be the same account they sent the money to. Looking to pay it down to under 9% or pay it off and wondering if it's ok to use the loan money they gave me to send back and pay them.

I already have a SSL (pledge loan with Navy) $3001 60 month 93% payed with $187.00 balance reporting on my credit report. Had it for 1 1/2 now .I really didnt need the loan so looking to avoid the 100% installment utilization balance score decrease and give them back their money before it reports. I know i may take a small hit for new account ect, but cant fathom score decrease i'll experience if this reports as $15,000 owed.

Originally took loan for recreational purpose but it didnt materialize and now trying to clean this up....

Thanks for any replys!

Re: Amex Personal Loan Payback Question?

JoeRockhead — Sat, 09 Sep 2023 09:50:19 GMT

Being you could use that bank account to make CC or loan payments anyway, I don't see where this would be a problem.

Maybe someone will chime in with experience in a similar situation but if I were that concerned about it I'd just give them a call and tell them you made a mistake in getting the loan, and your intentions to pay it down.

Re: Amex Personal Loan Payback Question?

SouthJamaica — Sat, 09 Sep 2023 11:27:16 GMT

@jcc332006 wrote:
Hello Credit Gurus!

I was a approved a $15,000 Amex Personal Loan and looking to pay it back before it hits my credit report. I just received the funds 2 days ago on 09/06 into my bank account.

My question is would I be able to use My bank account on file with Amex to push the ACH Loan payment back and it wouldnt be a problem? Or would this not be acceptable to AMEX? It would be the same account they sent the money to. Looking to pay it down to under 9% or pay it off and wondering if it's ok to use the loan money they gave me to send back and pay them.

I already have a SSL (pledge loan with Navy) $3001 60 month 93% payed with $187.00 balance reporting on my credit report. Had it for 1 1/2 now .I really didnt need the loan so looking to avoid the 100% installment utilization balance score decrease and give them back their money before it reports. I know i may take a small hit for new account ect, but cant fathom score decrease i'll experience if this reports as $15,000 owed.

Originally took loan for recreational purpose but it didnt materialize and now trying to clean this up....

Thanks for any replys!

I don't see any problem with that.

Re: Amex Personal Loan Payback Question?

jcc332006 — Sun, 10 Sep 2023 00:24:34 GMT

@JoeRockhead wrote:
Being you could use that bank account to make CC or loan payments anyway, I don't see where this would be a problem.

Maybe someone will chime in with experience in a similar situation but if I were that concerned about it I'd just give them a call and tell them you made a mistake in getting the loan, and your intentions to pay it down.

Thanks appreciate the feedback!

Re: Amex Personal Loan Payback Question?

jcc332006 — Sun, 10 Sep 2023 00:25:56 GMT

@SouthJamaica wrote:
@jcc332006 wrote:
Hello Credit Gurus!

I was a approved a $15,000 Amex Personal Loan and looking to pay it back before it hits my credit report. I just received the funds 2 days ago on 09/06 into my bank account.

My question is would I be able to use My bank account on file with Amex to push the ACH Loan payment back and it wouldnt be a problem? Or would this not be acceptable to AMEX? It would be the same account they sent the money to. Looking to pay it down to under 9% or pay it off and wondering if it's ok to use the loan money they gave me to send back and pay them.

I already have a SSL (pledge loan with Navy) $3001 60 month 93% payed with $187.00 balance reporting on my credit report. Had it for 1 1/2 now .I really didnt need the loan so looking to avoid the 100% installment utilization balance score decrease and give them back their money before it reports. I know i may take a small hit for new account ect, but cant fathom score decrease i'll experience if this reports as $15,000 owed.

Originally took loan for recreational purpose but it didnt materialize and now trying to clean this up....

Thanks for any replys!
I don't see any problem with that.

Thanks!!

Re: Amex Personal Loan Payback Question?

UncleB — Wed, 13 Sep 2023 04:32:03 GMT

@jcc332006 wrote:
Hello Credit Gurus!

I was a approved a $15,000 Amex Personal Loan and looking to pay it back before it hits my credit report. I just received the funds 2 days ago on 09/06 into my bank account.

My question is would I be able to use My bank account on file with Amex to push the ACH Loan payment back and it wouldnt be a problem? Or would this not be acceptable to AMEX? It would be the same account they sent the money to. Looking to pay it down to under 9% or pay it off and wondering if it's ok to use the loan money they gave me to send back and pay them.

I already have a SSL (pledge loan with Navy) $3001 60 month 93% payed with $187.00 balance reporting on my credit report. Had it for 1 1/2 now .I really didnt need the loan so looking to avoid the 100% installment utilization balance score decrease and give them back their money before it reports. I know i may take a small hit for new account ect, but cant fathom score decrease i'll experience if this reports as $15,000 owed.

Originally took loan for recreational purpose but it didnt materialize and now trying to clean this up....

Thanks for any replys!

This is fine. I took a loan from them for $5k, and immediately paid back $2k to keep the loan from reporting at 100%.

The only thing I did different is I didn't push a payment from my bank, I let Amex do an ACH "pull" from my checking account, which of course they already had on file (the same account they sent the loan proceeds to). Put another way, the payment was initiated on the Amex website, not my bank's bill pay dashboard.

You probably already know this, but if you make a large payment on an Amex loan you'll still owe the regular payment the next month (the total loan term is shortened). This is unlike the NFCU share loan, where making a large payment pushes out your payment schedule which keeps the loan term the same.

Re: Amex Personal Loan Payback Question?

jcc332006 — Thu, 14 Sep 2023 01:18:32 GMT

@UncleB wrote:
@jcc332006 wrote:
Hello Credit Gurus!

I was a approved a $15,000 Amex Personal Loan and looking to pay it back before it hits my credit report. I just received the funds 2 days ago on 09/06 into my bank account.

My question is would I be able to use My bank account on file with Amex to push the ACH Loan payment back and it wouldnt be a problem? Or would this not be acceptable to AMEX? It would be the same account they sent the money to. Looking to pay it down to under 9% or pay it off and wondering if it's ok to use the loan money they gave me to send back and pay them.

I already have a SSL (pledge loan with Navy) $3001 60 month 93% payed with $187.00 balance reporting on my credit report. Had it for 1 1/2 now .I really didnt need the loan so looking to avoid the 100% installment utilization balance score decrease and give them back their money before it reports. I know i may take a small hit for new account ect, but cant fathom score decrease i'll experience if this reports as $15,000 owed.

Originally took loan for recreational purpose but it didnt materialize and now trying to clean this up....

Thanks for any replys!
This is fine. I took a loan from them for $5k, and immediately paid back $2k to keep the loan from reporting at 100%.

The only thing I did different is I didn't push a payment from my bank, I let Amex do an ACH "pull" from my checking account, which of course they already had on file (the same account they sent the loan proceeds to). Put another way, the payment was initiated on the Amex website, not my bank's bill pay dashboard.

You probably already know this, but if you make a large payment on an Amex loan you'll still owe the regular payment the next month (the total loan term is shortened). This is unlike the NFCU share loan, where making a large payment pushes out your payment schedule which keeps the loan term the same.

Right on man! Appreciate the feedback. I'm definetely looking to pay a substantial amount of that back right away. Probably about $13,000 in hopes that it want hit me too bad. Experian's says in the score tabulator that if I took out a loan with a 797 fico i would lose 25 points taking me to 770-772 or so. While 770'ish is not too shabby of a score I must admit that I do like seeing that 797 especially since it seems that experian piecemeals it's points out. I mean 2 points every 6 months from them is just absolute torture. I sat on 795 for literally 6 months here recently and I just knew after patiently waiting they would give me the 5-6 points to get me over 800 but low and behold they give me a measly 2 points. lol I told my wife it seems they were purposely holding me at 795 in hopes that I would get desperate and do Experian Boost to get me over the 800 score. My file is clean pay in full every month Utilization 0-1% numerous credit limit increases and 2 points in 6 month window is just ridiculous. lol Thanks again my friend!