AMEX Personal Loan - PreApproved - Question - myFICO® Forums

TGG_1976 · ‎04-27-2021

Hola!

Over the past days, I have received the preapproval message from Amex that I am preapproved for 15k for a personal loan. After paying of my car last year, I currently have no installment loan on my credit reports. I do not need a personal loan and I am not looking to add inquiries to my reports as I am looking to take on a morgage next year. Yet, I know that the installment loan may help boost my scores.

In that case, I would take out the loan, pay it back to get it under 9% remaining balance and then make regular monthly payments. I am just really torn to add an inquirie to my credit reports.

My scores are currently around 730. Overall utilization is 8%. I have 5 inquiries with 3 falling off this year.

I am just not sure what to do?

coldfusion · ‎04-27-2021

If you want to add an installment loan as a way to bolster your credit score, this isn't the way to do it.

You want a shared secured loan that allows you to pay down 91% of the loan immediately while retaining the original due dates of the payments against the remaining 9% of the loan. It's the latter requirement that many installment loans do not do.

The NFCU SSL is the lastest favorite here but there are others. There is a slightly aged master thread discussing the search for an alternative after Alliant FCU discontinued their product if you want to search for it and get some ideas.

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Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion

SouthJamaica · ‎04-27-2021

@TGG_1976 wrote:
Hola!

Over the past days, I have received the preapproval message from Amex that I am preapproved for 15k for a personal loan. After paying of my car last year, I currently have no installment loan on my credit reports. I do not need a personal loan and I am not looking to add inquiries to my reports as I am looking to take on a morgage next year. Yet, I know that the installment loan may help boost my scores.
In that case, I would take out the loan, pay it back to get it under 9% remaining balance and then make regular monthly payments. I am just really torn to add an inquirie to my credit reports.

My scores are currently around 730. Overall utilization is 8%. I have 5 inquiries with 3 falling off this year.

I am just not sure what to do?

If you want my opinion, skip it. You don't need another inquiry. And you don't need a new account. It just isn't worth it.