@Anonymous wrote:
Thanks for the input guys but I shouldve been more clear, Im not paying it 30 days late, just one day.
The way Fingergut freshstart works is you have an 8 month installment loan for a small $50 or $100 purchase. If you make all 8 payments on time, the loan will be paid off and you'll be given a revolving card with Fingerhut. In other words, loan is closed and a new revolver opens.
I have 5 new accts this year already and plan to go for a car loan. My AAoA has steadily dropped from 5yrs to 3.7yrs to 3.0 to 2.5 as it is. With another revolver it would go down further - Id certainly get dinged for it AND get dinged for having no open loans.
The way I see it (and disagree if you do) is the worst consequence is I get charged a $2 late fee (yes $2) and Fingerhut never lets me get a credit card with them. Since its not a 30 day late, my credit isn't harmed. Id then pay the loan off one day after the due date and simply not graduate. This way, when I go for an Amex or car loan or mortgage in the next two years I have one less new account to be showing....thats my thinking
OP you're free to do as you choose. You asked for advice, we offered. In my opinion, not that I'm interested in anything WebBank has to offer at the moment, but the reason I wouldn't want to pay late is because while it may not affect your credit being reported, it could potentially put a dark spot on an internal profile with them.
With the way lenders buy and sell account these days, you never know if an account you have (or may want in the future) will end up in the hands of WebBank or any other bank for that matter. Paying on time helps to keep a clean report to the bureaus as well as internally. Again, do was you wish but the advice mentioned in this thread from other is solid and for any of us to advise a forum member to intentionally pay late would be as bad as taking a wrecking ball to the foundation that this forum is build upon.
Best of luck to you in whatever you decide.
