topic installment loan in General Credit Topics

installment loan

Anonymous — Sun, 08 Jul 2012 06:02:23 GMT

I plan to get an installment loan just for sake of my credit score. Is there any lender who report to all CRAs and have low APR? Also since I don't need money, what is the smallest amount of loan I can get?

Re: installment loan

Anonymous — Sun, 08 Jul 2012 06:11:10 GMT

for what?

Re: installment loan

thankfulheart — Sun, 08 Jul 2012 09:32:11 GMT

Have you looked into a credit union?

Re: installment loan

pizzadude — Sun, 08 Jul 2012 13:55:47 GMT

@Anonymous wrote:
I plan to get an installment loan just for sake of my credit score. Is there any lender who report to all CRAs and have low APR? Also since I don't need money, what is the smallest amount of loan I can get?

I'm not a big fan of taking out a loan just to add to your credit mix, it may not result in much of a FICO point gain. However if you are set on doing this I would start with a local CU as others have recommended.

Re: installment loan

Anonymous — Sun, 08 Jul 2012 14:08:36 GMT

So you mean I just go to a local CU and tell them I want a loan to increase my CS? Or ask for a specific type of loan?

Re: installment loan

pizzadude — Sun, 08 Jul 2012 14:27:30 GMT

Can you share some additional information about your credit profile ? Any negatives or derogatory accounts ? What is your average age of accounts ( AAoA ) ?

Re: installment loan

Repo-ed — Sun, 08 Jul 2012 14:28:09 GMT

I went to a local CU JUST to take out 2 installment loans, to add to my credit mix.

1 was a 1k loan over 12 months. The loan was placed into the savings account, and the montly pmt is auto-drafted right from the money the loaned me.

The other was a motorcycle loan for 24 months, also auto drafted from savings, as I have my p/t check direct deposited to my savings account, to satisfy that loan.

The interest amount, at least to me, are minimal in the overall grand scheme. I get a FICO bump, and grow an even more solid relationship with my CU, so when the time comes for another loan, they'll not hestitate to help me out.

Re: installment loan

Anonymous — Sun, 08 Jul 2012 15:16:46 GMT

@pizzadude wrote:

Can you share some additional information about your credit profile ? Any negatives or derogatory accounts ? What is your average age of accounts ( AAoA ) ?

no negative. oldest account 20 month. AAoA 14 month. FICOs are between 740 and 750

Re: installment loan

Anonymous — Sun, 08 Jul 2012 15:18:44 GMT

@Repo-ed wrote:
I went to a local CU JUST to take out 2 installment loans, to add to my credit mix.
1 was a 1k loan over 12 months. The loan was placed into the savings account, and the montly pmt is auto-drafted right from the money the loaned me.
The other was a motorcycle loan for 24 months, also auto drafted from savings, as I have my p/t check direct deposited to my savings account, to satisfy that loan.
The interest amount, at least to me, are minimal in the overall grand scheme. I get a FICO bump, and grow an even more solid relationship with my CU, so when the time comes for another loan, they'll not hestitate to help me out.

Can I ask the type and interest rate of that 1k loan?

Re: installment loan

pizzadude — Sun, 08 Jul 2012 15:21:04 GMT

@Anonymous wrote:
@pizzadude wrote:

Can you share some additional information about your credit profile ? Any negatives or derogatory accounts ? What is your average age of accounts ( AAoA ) ?
no negative. oldest account 20 month. AAoA 14 month. FICOs are between 740 and 750

Looks like you are in great shape with your FICO® scores, honestly I don't think that you need to do anything right now other than let your accounts age with positive payment history.

Re: installment loan

Anonymous — Sun, 08 Jul 2012 16:11:33 GMT

@pizzadude wrote:
@Anonymous wrote:
@pizzadude wrote:

Can you share some additional information about your credit profile ? Any negatives or derogatory accounts ? What is your average age of accounts ( AAoA ) ?
no negative. oldest account 20 month. AAoA 14 month. FICOs are between 740 and 750
Looks like you are in great shape with your FICO® scores, honestly I don't think that you need to do anything right now other than let your accounts age with positive payment history.

if your planning on building a relationship with a cu then yes an installment loan would help you for relationship purposes but if the sole purpose is to score boost it wouldnt be worth it. if your trying to be borderline 800's on the score it might take several years of paying your bills on time for that to happen

Re: installment loan

Lasardo — Sun, 08 Jul 2012 17:58:11 GMT

BCF, So glad you asked the question. I got a CD that can start at 1k up to 5k. It is .44% of the amount/payments .it shows as an installment loan. Let me explain.. For example: you can put 44 dollars a month into a savings account (CD)..at 2 years the funds are available to you and it shows up on your credit report as an installment loan. I went with 2k (88 a month) it shows positive (green) on my report as an $2000 installment loan and boosted my score 17 points immediately. I have just started paying on it so as long as I keep my payments on time it will continue to increase my score. I am curious how much my score will increases once I atually start payments. I have only found one bank that does it but you may want to ask around. I love the fact that I have savings while improving my credit at the same time. If you want the information I will pm it to you. Good luck.

Re: installment loan

Anonymous — Sun, 08 Jul 2012 20:34:11 GMT

Can you give me the name of that bank. I have never heard of CD that reports to credit bureaus.

Re: installment loan

Revelate — Mon, 09 Jul 2012 05:01:57 GMT

@Anonymous wrote:
Can you give me the name of that bank. I have never heard of CD that reports to credit bureaus.

Sounds funny. May be more to it.

Anyway since I fall firmly in the camp of getting installment loans on a report for just about anyone, I simply did a secured CD loan with USAA. Effective interest rate of 2%.

Likewise I got a decent boost, though I had an auto loan hit around hte same time too. With your scores, YMMV, wouldn't be surprised if it's a short-term negative but longer term it'd be nothing but goodness if you don't have an auto or mortgage loan (or other installment loan) already on there.

Re: installment loan

Lasardo — Mon, 09 Jul 2012 05:26:59 GMT

It sounds like any local bank may offer this..never the less I sent the info to you.

Re: installment loan

Anonymous — Mon, 09 Jul 2012 13:26:09 GMT

If you can get a CD-secured loan, then it might be worth it.

Otherwise, you might as well get a credit card with an annual fee.

Re: installment loan

Lasardo — Tue, 10 Jul 2012 03:34:16 GMT

I earn intest off my CD and do not pay fees plus I save $$ while improving my credit score

Re: installment loan

webhopper — Wed, 11 Jul 2012 03:08:55 GMT

I did this in 2007 through chase bank. It paved the way for a mortgage in 2008. My chase banker recommended this. He also got me a freedom card with a small limit.

Re: installment loan

Lasardo — Wed, 11 Jul 2012 05:19:48 GMT

Just received a email that my score has increased to 644 from 554. I have removed several negative items from my report, I have been added as an AU on one card (30 points) and have now been paying for 1 month on my CD. I think once I continue with these on time payments (auto w/d) I should see more of an improvement. Hope this information helps. Good luck