topic Making payments toward principal will be reported as a separate payment on my monthly report? in General Credit Topics

Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Fri, 02 Apr 2021 02:34:38 GMT

suppose you have a loan, and you wanna do some hacking in terms of the number of payments that will be reported, do pymnts toward the principal count as a seperate pymnt on your credit beaures reports?

for example you have a monthly due of $1200 and you have a 60 month term, and aside from that monthly pay you wanna make 20 payments of $200 toward your prinicpal per month, after loan is closed or even during the time frame of the loan, are these pymnts will be reported as a seperate payment, or they solely lower down the balance you owe?

and is there a difference on gaining score out of closing off(paying off) one loan($72,000) by making 60 payments vs. 180 payments?

and if yes, will they be counted as seperate even if I do 5 payements a day?

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

dragontears — Fri, 02 Apr 2021 02:41:06 GMT

@Anonymous wrote:
suppose you have a loan, and you wanna do some hacking in terms of the number of payments that will be reported, do pymnts toward the principal count as a seperate pymnt on your credit beaures reports?

for example you have a monthly due of $1200 and you have a 60 month term, and aside from that monthly pay you wanna make 20 payments of $200 toward your prinicpal per month, after loan is closed or even during the time frame of the loan, are these pymnts will be reported as a seperate payment, or they solely lower down the balance you owe?

and is there a difference on gaining score out of closing off(paying off) one loan($72,000) by making 60 payments vs. 180 payments?
and if yes, will they be counted as seperate even if I do 5 payements a day?

A "payment" in regards to credit scoring is a monthly occurrence. If you paid off a 180 month loan in 12 months you would have 12 "payments" not 180.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Fri, 02 Apr 2021 02:49:42 GMT

is there a way to customize a loan(by underwriters) to have 3 payments a month? is there any bank or Financial instituion out there that can customize a loan to have 3 dues a month?

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Brian_Earl_Spilner — Fri, 02 Apr 2021 03:00:46 GMT

Well, the bureaus only keep track of one payment a month so I don't see how making 3 payments a month will help you. What is your goal here?

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

dragontears — Fri, 02 Apr 2021 03:06:15 GMT

@Anonymous wrote:
is there a way to customize a loan(by underwriters) to have 3 payments a month? is there any bank or Financial instituion out there that can customize a loan to have 3 dues a month?

You are not understanding.

It doesn't matter what the lender does.

For the algorithm it is a monthly thing.

For example, Chase reports automatically with the statement balance and whenever the account is brought to $0. The extra reporting by chase is still only viewed as "reported as good standing in April"

The "payments" term is used a lot on credit monitoring services (CMS) and can give the impression that if you make more than one payment in a month you can improve that segment of your scores but that is not the case.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Fri, 02 Apr 2021 03:15:17 GMT

beautiful, so the algorithm only counts one payment a month! regardless of the loan terms(since I have heard of some loans that have 2 dues a month)

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Kforce — Fri, 02 Apr 2021 03:21:23 GMT

@Anonymous wrote:
beautiful, so the algorithm only counts one payment a month! regardless of the loan terms(since I have heard of some loans that have 2 dues a month)

Yes, this is to save a little interest and maybe help with ones budget.

It will not change reporting to CB's.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Fri, 02 Apr 2021 03:25:29 GMT

THx a LOT

So the moral to the story I think is better to get two or 3 loans vs one loan, since that will generate more payments in shorter amount of time.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

designated_knitter — Fri, 02 Apr 2021 17:49:48 GMT

You have to be careful because if you open 20 trade lines in such a short period of time, when you are ready to try for unsecured cards with Chase, Amex, etc, all that activity will be viewed as credit seeking and you will be declined.

Chase won't approve anyone who has more than 5 new accounts in 24 months.

I doubt Amex would look at your excessive accounts as just trying to jumpstart your credit score. They'll perceive it as credit seeking... or even worse: attempted money laundering.

you really need to look at the elements that make up your FICO scores

on time payments
Utilization
average age of accounts
Inquiries
one more I can't remember off the top of my head... leaving it blank as an exercise to the reader to use the Google machine to find out what it is.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Fri, 02 Apr 2021 19:16:39 GMT

OP, what you need to do is absorb the advice in this and your other threads and stop trying to hack your way to a high score (to use your terminology). The algorithms are designed in part to prevent people from BSing their way to an inflated level of creditworthiness. A loan institution simply reports a new balance to the bureaus each month, and the payment made is derived from the difference between that balance and the balance the prior month. None of them report to the bureaus every time you pay them.

As @Anonymous explained in another thread, she ended up with a mid-700 score after a year. As we tell people here all the time, a young or "thin" 750 is great but will not carry the same weight with a lender as a 750 with five or ten years under its belt. Scores are built on reliability, and earning a 700+ in six months is all well and good, and a great start, but it lacks the key ingredient - time. Maintaining a 700 for a few months isn't tough. Having it ten years down the road carries a lot more weight. It proves you really can manage finances.

You have great, and correct, replies in your threads. Put that info to use, build a profile and score over time, and you'll be set. Stop with the shortcut attempts. Lenders have seen it all and I can promise, you aren't fooling them.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

cashorcharge — Fri, 02 Apr 2021 19:19:59 GMT

I have been making additional car payments on a lease and the only benefit is that the percentage balance of the loan is decreasing faster than it should so the new balance reports but it's not doing anything else.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Fri, 02 Apr 2021 23:07:37 GMT

@Anonymous wrote:

As @Anonymous explained in another thread, she ended up with a mid-700 score after a year. As we tell people here all the time, a young or "thin" 750 is great but will not carry the same weight with a lender as a 750 with five or ten years under its belt. Scores are built on reliability, and earning a 700+ in six months is all well and good, and a great start, but it lacks the key ingredient - time. Maintaining a 700 for a few months isn't tough. Having it ten years down the road carries a lot more weight. It proves you really can manage finances.

Well said, @Anonymous ! I agree 1000% with all of that.

My credit file is 3 years 4 months old, and I've only had credit cards for 2yrs 4mo of that. I've said several times before on this forum that I don't think my profile really proves very much until a minimum of 5 years.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Sat, 03 Apr 2021 00:43:20 GMT

The good thing is, @Anonymous , you're doing a proper buildup and your profile is already more solid than many with years more on them. At five years, let alone ten, yours will be bulletproof. Definitely one of the shining examples of How To Do It

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

SouthJamaica — Sat, 03 Apr 2021 17:05:04 GMT

@Anonymous wrote:
THx a LOT
So the moral to the story I think is better to get two or 3 loans vs one loan, since that will generate more payments in shorter amount of time.

Absolutely not. Every loan you get is another weight on your scores.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Slabenstein — Sat, 03 Apr 2021 17:23:28 GMT

@SouthJamaica wrote:
@Anonymous wrote:
THx a LOT
So the moral to the story I think is better to get two or 3 loans vs one loan, since that will generate more payments in shorter amount of time.
Absolutely not. Every loan you get is another weight on your scores.

+1 "Number of on time payments" is a CMS/VantageScore thing and is not a scored metric in FICO. FICO payment history looks at the recency, severity, and to some extent number of late payments reporting and how many of your accounts have ever been late. You can't swamp the metric by taking out multiple lines to have a larger number of "positive" payments. Usually, the most you can hope for in taking out additional installments is that your scores not go down due to their impact on aging metrics, # of accounts w/ a balance, b:l ratio, and dollars owed. As @Anonymous said, refer back to the answers in your other thread for best practices in growing a new profile.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Mon, 05 Apr 2021 02:41:54 GMT

attempted money laundering.

Lol, right! this was crucial

so I first open those 3 Secure cards each $1000, and then quickly will open three loans of 100K, 1K and 1K, pay off 92%(or as much as I have 13 payments left) right off the bat, and make 13 payments until the closure.

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

FinStar — Mon, 05 Apr 2021 04:47:37 GMT

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

Anonymous — Mon, 05 Apr 2021 09:16:02 GMT

@Anonymous wrote:
attempted money laundering.
Lol, right! this was crucial
so I first open those 3 Secure cards each $1000, and then quickly will open three loans of 100K, 1K and 1K, pay off 92%(or as much as I have 13 payments left) right off the bat, and make 13 payments until the closure.

Ok, you do you.

/thread

Re: Making payments toward principal will be reported as a separate payment on my monthly report?

coldfusion — Mon, 05 Apr 2021 10:59:01 GMT

@FinStar wrote: