will recent prosper and lending club loans effect my buying my first car?

[damac2004]

still a noob to the credit thing, i have lots to read.  on my profile it says i have a good mix of credit.  handfull of credit cards and a prosper and lending club loan i took out a few months ago.  these just started reporting and my credit number took a little hit and is 703 right now.

i want to do the right thing and rebuild for this car loan.  i am starting to pay off all the credit cards except a gas card and had almost 50% utilization before i setup all these other cards to payoff through the middle of this month.  so i have to assume the credit score will go up as they report.

the lending club and prosper loans are installment loans like cars right?  i don't have any of these in my history before and never had a car loan.

when they pull my credit do they look at utilization as one huge pot of $$$ or do i need to seperate the installment loans and credit cards and pay off all or some of the installment loans as well to make myself look less risky since i have only mad a few payments on each?

i got the loans at the time thinknig i read around here its good for credit mix and it does show that on myfico now but right now its only hurt my score.  i was dealing with recovery/surgery from a personal injury and the money helped because i was unsure at the time i would settle the case which i now have.

thanks!

[Creditaddict]

The installment loans will probably help you get approved for car loan IF the payments don't make your debt to income over say 30-40%.

That's all your installment loan payments each month and credit card minimum payments = divided by your monthly gross income = %

[fury1995]

Consolidation (Consumaer Finance Loans)  loans typically won't make much of a negative impact for the purposes of auto lenders, even upon manual review. The overall monthly debt would be reduced and may even help.

They usually have a larger influence for credit card approvals as it may be seen as an inability to handle revolving debt.

[Creditaddict]

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@fury1995 wrote:

Consolidation (Consumaer Finance Loans)  loans typically won't make much of a negative impact for the purposes of auto lenders, even upon manual review. The overall monthly debt would be reduced and may even help.

They usually have a larger influence for credit card approvals as it may be seen as an inability to handle revolving debt.

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SAY WHAT!?

When my partner took out personal loans with Navy, Sofi.com, and loandepot, his score actually had no change even with taking on all the debt because it was installment vs revolving.

In his case we didn't actually have any revolving debt but I would assume had we moved revolving debt to installment (personal loan) his score would have skyrocketed.

I'm unsure which ones report as consumer finance and if that makes them worse I have heard but in our case no.

[fury1995]

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@Creditaddict wrote:

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@fury1995 wrote:

Consolidation (Consumaer Finance Loans)  loans typically won't make much of a negative impact for the purposes of auto lenders, even upon manual review. The overall monthly debt would be reduced and may even help.

They usually have a larger influence for credit card approvals as it may be seen as an inability to handle revolving debt.

---

SAY WHAT!?

When my partner took out personal loans with Navy, Sofi.com, and loandepot, his score actually had no change even with taking on all the debt because it was installment vs revolving.

In his case we didn't actually have any revolving debt but I would assume had we moved revolving debt to installment (personal loan) his score would have skyrocketed.

I'm unsure which ones report as consumer finance and if that makes them worse I have heard but in our case no.

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Yeah, I've seen it.

Some denials have actually said

"TOO MANY CONSUMER FINANCE ACCOUNTS" or "RECENT CONSUMER FINANCE ACCOUNT".

Either that or something similar but it did list consumer finance accounts as one of the reasons.

there are a bumch of threads but here is a more recent one.

http://ficoforums.myfico.com/t5/Credit-Cards/Too-many-consumer-finance-company-accounts/td-p/3841895

[Creditaddict]

But which one of them report as consumer finance?

[fury1995]

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@Creditaddict wrote:
But which one of them report as consumer finance?

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I believe One Main is one. CitiFinaincial. Peer to Peer.

I look into it.

Edited to add..

Conflicting reports but there are some versions of reports that do say Prosper is a Consumer Finance Account in this thread:

http://ficoforums.myfico.com/t5/General-Credit-Topics/Prosper-and-Lending-Club-Loans-and-Credit-Bure...

[StartingOver10]

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@fury1995 wrote:

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@Creditaddict wrote:
But which one of them report as consumer finance?

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I believe One Main is one. CitiFinaincial. Peer to Peer.

I look into it.

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I can see that One Main is considered a consumer finance account. it is a high interest sub prime loan similar to a payday type loan with terrible terms. Even CitiFinancial is known to be a consumer finance type account (subprime type loan). 

I would be interested in seeing how prosper or lending club are notated. I would hope that there would not be a negative effect from that type of P2P loan as opposed to something like One Main. Let us know 

[damac2004]

can i tell by looking at myfico account how these report?

so i will get my credit cards to 0 balance this next week except one with a small balance and i will change my trends as far as using my cards and paying them off right away otherwise.

i will look over my debt to income and factor all that in with a range of car payments for a <$20,000 im looking for.

lets say i come in at 30% debt to income and assume i want to improve my score before i go in.

would it be better to pay down these loans to some magical % number?

if im borderline on the debt to income should i pay off the smaller loan?

thanks!

[Creditaddict]

Right one main is very different.
I know our sofi loan is not
Navy is not
Loan depot either I don't believe... I mean partners scores are 792 as a recent letter showed, that's not a score of a consumer finance company on file!