topic personal loan in Rebuilding Your Credit

personal loan

Anonymous — Tue, 16 Jun 2015 11:44:53 GMT

I was checking pre approvals without getting hard pulls and was pre approved with Avant for up to 20,000. Their interest rates are ridiculous and I understand why. My questions is this, would it benefit my credit score if I took the loan for about 10 grand then took a loan out from my 401k to pay the avant loan off right away. Would that make any headway in improving my scores. right now i'm in the 600-610 range with all 3 bureaus. What I'm shooting for is to get my scores up above 640 by mar of next year to attempt a VA home loan. Thanks

Re: personal loan

Anonymous — Tue, 16 Jun 2015 12:05:42 GMT

If you don't have an installment loan and you're looking to add one, you do not need to borrow 10K. You could simply do a secured $500.00 CU loan with monthly payments of like $25.00 for the same effect. I would not take out that Advant 10K loan, pay the interest and than pay fee's for the 401K borrowing. You don't need to do this to raise your scores. Any installment loan will help. The amount doesn't matter if you're simply looking to raise your scores.

Re: personal loan

Anonymous — Tue, 16 Jun 2015 12:08:41 GMT

thank you that route seems better. I wasn't sure if the amount of the loan made a difference or not.

Re: personal loan

bstone — Tue, 16 Jun 2015 12:22:43 GMT

And paying it off immediately isn't going to help much, if any. Your scores look at the types of credit you have (loans, mortgage, cc's, etc.) but also the payment history of each. If you make one payment there isn't enough data to say "yeah, he pays on time".

I second the small credit builder loan, put $1000 or so in an account, pay for a year and you should be good.