OneMain Credit card payoff

[Anonymous]

I have spent the last year rebuilding my credit and while I still want to see the score higher, I am happy with the progress I have made. I have a handful of small credit cards, as well as a few store accounts. I applied for a loan with OneMain and was approved for $5K with the condition that they pay off all my balances and the rest goes to me. In theory I am fine with this, my question though is, if I do this will my credit cards still be open? I don't want to close out the few cards I have, I want to keep them to continue building credit. Any insight is greatly appreciated!

[Anonymous]

OneMain loans report as a "consumer financial loan" which can actually have a slightly negative effect on your credit score although there are plenty of folks here who have an old paid off consumer financial loan on their reports and they're in the high 700s.

You'd be better off with a SSL from Alliant which reports as a "real" non-revolving loan -- pay off 91% of it before the first statement cuts and you'll maximize your credit score.

If you want to max your FICO 08, you shouldn't be reporting balances on your revolving credit.  PIF all of them before statement except for one card, and leave that one with a tiny balance ($3 up to 9% of the TL).  If you have balances reporting, you're hurting your FICO 08.

[Anonymous]

What's the one main interest rate?

As long as your score hasn't dropped significantly below what it was when you were given each card you will most likely end up with a bunch of CCs at $0 that are still open plus a onemain loan. I've had a loan from them for years from a hvac replacement. They report to one cra per month so each one gets an update every quarter. If the interest is better than the cards, you can change your mindset from carrying CC balances to pif each month, and you can make more than the minimum payment to onemain; it should be a good idea. However if you wake up in 12 months in twice as much debt then try to pay the debt off without it.

[Anonymous]

My score has increased since I got most of these cards. I am fine with having them all at $0, I just don't want them to be closed if the payment comes from OneMain and not me.

[Creditplz]

They won't be closed (I'm prettt sure) but Onemain is known for interest rates north of 25-30% which is IMO "predatory lending" area, id avoid them if possible.

[Creditaddict]

If the interest rate is higher than your credit cards I would not do it!