topic Re: self-lender loans in Understanding FICO® Scoring

self-lender loans

vicky3vicky — Sun, 02 Feb 2020 05:42:29 GMT

I hear that installment loans can improve your credit. I do not have a loan on my home or car, so I have no installment loans. i read that they are supposed to help your credit score, but them it sounds like they don't actually cause a positive effect until you owe less than 8.9% and that then you lose points when they are paid. I am so confused. Should I get one or no? [score stuck for months at 668]

Re: self-lender loans

AllZero — Sun, 02 Feb 2020 06:03:45 GMT

@vicky3vicky wrote:
I hear that installment loans can improve your credit. I do not have a loan on my home or car, so I have no installment loans. i read that they are supposed to help your credit score, but them it sounds like they don't actually cause a positive effect until you owe less than 8.9% and that then you lose points when they are paid. I am so confused. Should I get one or no? [score stuck for months at 668]

I would recommend addressing any derogatory or delinquency that is suppressing your scores.

If utilization is high, then seek AZEO All Zero Except One.

After reading the below, then I would suggest at minimum a 5 year SSL. 1 year would be too short and you may be penalized for opening new accounts (if on a clean score card), lowering AAoA Average Age of Accounts.

Here are good primers to read.

Adding an installment loan -- the Share Secure technique

The Quest for an SSL alternative to Alliant

Re: self-lender loans

AllZero — Sun, 02 Feb 2020 06:13:47 GMT

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:

NFCU - membership restrictions.

SSFCU - geofence.

Re: self-lender loans

SouthJamaica — Sun, 02 Feb 2020 13:33:21 GMT

@vicky3vicky wrote:
I hear that installment loans can improve your credit. I do not have a loan on my home or car, so I have no installment loans. i read that they are supposed to help your credit score, but them it sounds like they don't actually cause a positive effect until you owe less than 8.9% and that then you lose points when they are paid. I am so confused. Should I get one or no? [score stuck for months at 668]

IMHO, no. I think the positive effects of adding a new account like that are greatly exaggerated in this forum.

Re: self-lender loans

Anonymous — Sun, 02 Feb 2020 22:10:51 GMT

Well its adds 15-45 point depending on profile (paid <8.9%), so I guess exaggerated is subjective or could depend on how many points one needs.

Be aware though OP, if you are on a dirty card, you will probably have a maximum score you can reach until the baddies go byebye.

Re: self-lender loans

Anonymous — Wed, 05 Feb 2020 19:57:35 GMT

I currently have a self lender loan ... I also currently have a car loan ... The Self lender loan really didnt do anything for me ... I use Self Lender .. there credit score for me is not a Fico score .. its actually really low and they dont report the updated balance on time .. i just will continue to pay on it and consider it a little savings account so when it matures i get it back ... A Self Lender loan also give you the option to utilize money you have accumulated and they will send you a Secured credit card with your current deposit(s) as the limit. this might be a great idea with someone rebuilding credit as well ..

Re: self-lender loans

Anonymous — Thu, 06 Feb 2020 01:15:41 GMT

@Anonymous It goes by aggregate installment utilization. So you have to consider the car loan as well that’s why it’s not helping you most likely.