0% Loan - is it worth it?

[js0319]

My DW are in the process of switching from BofA and Wells Fargo to RBFCU - we just opened our CU accounts the other day. We couldn't really get any kind of unsecured credit due to our scores. I was talking with a branch manager with another local CU that rents space in a retail store I work for, and she stated that for employees of my company they do $1,000 unsecured loans for us, regardless of credit score - and all I'd need to do is open a saving account with them and show proof of my employment. The terms of the loan are 12 months with 0%.

I'm wondering if my DW and I should try this to get another TL reporting on our CR's. We both work for the same company, so the same thing would apply to her as well. It would be a HP on EX. RBFCU uses TU, so that's where our inquiries were from the other day when we opened that account. I really don't want any more checking or savings accounts - hence one of the reasons why we're cutting BofA and Wells, but this almost sounds too good to pass up.

Is this something that's worth doing? My DW can't seem to get any unsecured credit right now as she's in the low 500's, and I am barely able to since I'm in the mid 500's. We have the ability to pay on-time - pretty much all of our baddies are from 4+ years ago, and we're in the process of clearing those up as well.

[js0319]

Bump

[llecs]

I personally wouldn't do it because of the new credit ding (assuming it reported) and the inquiry. On an economic standpoint, I like the idea of free money and if I were to take it, I'd invest it or save it. But that benefit is trumped due to the points lost, IMO. And certainly YMMV on your credit profile. If you have any installment account showing, I vote for a small loss. If no installments reporting, then a lesser loss. In either case, those points would probably return inside a year. In other words, I wouldn't recommend it for the purposes of rebuilding your credit.

[Anonymous]

Given your scores, I would take it. Pay back 70% in 3 months. Pay rest rest of it over the year. Positive history will help you.

[Anonymous]

I agree with Crashem. From where your scores are now the positive tradeline is of much more benefit than the small ding for any new account. And by the time you are ready for prime players (your credit scores are 650+) then the new account ding will be history and / or the loan(s) will be paid.

[kjm79]

When building or rebuidling youhave to open new accounts.  It's a necessary evil.  I'd agree with the posters who say to go for it.  IMO, I'd then take the money you got from the loan and use it to open secured cards for you and your DW.  You then get installment loan and revolving line of credits from the same $1,000. 

[namvet]

My daughter called me yesterday and said she took advantage of the WF offer.  Looked ok to me since she is just beginning her credit journey.

[Anonymous]

I'd be certain to read the fine print on that loan before signing anything, and I mean a GOOD thorough reading.

[boomhower]

With those scores I'd certainly do it.  A positive tradeline is always good and a positive installment tradeline will come in handy next time you go car shopping.  Don't pay it off early, use the full 12 months. 

[Booner72]

I would absolutely do it and use the money to PFD any collections or other things out there that you have that need paid.    But NO Matter What, you can't miss a payment on that loan.