lending tree

[jeffery581]

I do not have an installment loan on my reports. would taking a loan from lendingtree add an instalment loan to my credit reports?

I have read different types of credit affect 10% of your score.

Do some do it just to improve there credit?

This is what I want to do if it will help

[Appleman]

It would help the forum if you provided some more information:

1. What is your goal with your credit? (buy a house, get a high score?)

2. Why Lending Tree? And would it be for a car loan through the Lending Tree website?

3. Do you need a car? (meaning a new/used car to replace existing transportation)

To answer your question, yes many people will see a bump in their score if they have a variety of credit products. A few credit cards, an auto loan and a mortgage can all be beneficial for your scores. But to take on a loan just to boost a score does not seem like a good idea unless you have some goal or need.

[jeffery581]

Do not need a new car. Do not need house. But I would like to get my score as high as possible. Maybe an investment home in a few years. My fico is 730 right now. There are no installment loans on report now except for student loans that are going to start falling off as they were paid off years ago.  And I will eventually have to get a new car, just not now.

Thanks for the advise.

[jeffery581]

No particular reason for lending tree.

[jeffery581]

I was thinking small loan just for scoring purposes. 10% could put me over 800. I hope. 

[StartingOver10]

Take a look at this thread  http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Installment-tradeline-utilization-thread/...

You get the same score benefit with a $500 Alliant loan. It isn't the size of the loan, it is the remaining balance as compared to the initial loan amount that counts. The key is to borrow a small amount and pay back 95% of it in the first or second payment.  That strategy gets you your points without spending much on interest at all. 

[jeffery581]

So It will improve my fico score, 10% is a lot.

Pay it all off then make 2 last payments? or just pay regularly I have conflicting information about this

Is lending tree not very good?

I have looked over the link above several times and I am still not for sure how to go about this. The thread appears to be about utilization and that is not a problem for me.

Thank You!

[StartingOver10]

The thread is about installment loan utilization - not revolving.  You said you didn't have an installment loan.

Lending Tree is not good because you end up with a ton of inqs which would defeat your purpose in increasing your points.  Lending Tree is a lead generating service for lenders so you end up with inqs from a bunch of lenders in order for them to propose a loan to you. 

The Alliant loan 'trick' to get the points without sacrificing inqs and without much interest paid on the loan. The idea is to get a share secured loan for $500 and pay back 95% of it immediately after the $500 loan reports. Then you make small payments for the rest of the loan. This thread, post 4, explains how to get the Alliant loan: http://ficoforums.myfico.com/t5/General-Credit-Topics/Alliant-loan-help/m-p/4193024#U4193024

The other thread I posted shows you that there are benefits to paying down an installment loan to below certain threshold's - those threshold's are are being determined by the data points contributed by individual members as we don't have the criteria from FICO (its proprietary). 

[jeffery581]

From Lending Tree:

"We want to assure you that your application had no impact to your credit score."

My revolving is a ok. It is the installment I am looking into for improving fico.

Thanks again

[Anonymous]

Recently submitted a query with Lending Tree to see what terms I might qualify for to refinance my auto loan. I wasn't even sure I wanted to refinance at this time, just doing it for planning purposes.

I was of the mistaken impression that the initial query with LT is much like a query for pre-qualification of for a credit card (SP) and would not hurt my credit scores. Very soon after clicking the submit button, I received an alert from Experian that an inquiry had been made on my credit report. I logged into my account with Experian and saw that one of the lenders on the list they showed of possible lenders had done a HP. I immediately called this lender (rateGenius) who told me that Lending Tree leaves it up to the individual lenders as to whether they do a SP or HP. I was alarmed because I had not given LT my full SSN, only the last 4 digits.

Since I had no idea how may lenders might eventually respond like this to Lending Tree's "mass marketing", gun shot approach to obtaining potential lenders, I immediately locked my credit reports at all 3 bureaus and shot Lending Tree a letter requesting them to cancel my submission.

What a nightmare!

I know where I am not going to shop for any more loans.