Effects of HSBC Loan Payoff

Anonymous · ‎08-04-2007

Is the loan that I have with HSBC @ 32.99% for 10K considered a consumer finance loan?

How is my fico score affected by having one of these loans and would there be any benefit after paying this off to my scores?

Eric958 · ‎08-04-2007

Is that 32.99 right?

Never Give Up!!

Anonymous · ‎08-04-2007

Yes, it's right. Tried to get them to lower it but I would have to get a HELOC for them to do it. Desperate times caused me to make a horrible decision on this time.

Anonymous · ‎08-04-2007

MY I don't know what kind of loan it is but that % is a killer. I would pay down as fast as I could.

Also I know that you have a monthly pmt. Try & pay a little each week or once every 2 weeks. Just be sure that by pmt date the pmt amount is paid. If you can add a little more it will come down faster Every payment that you pay ahead of the pmt date cuts the amount of % that you are paying.

Usually % is added daily not just at end of mo.

Message Edited by HappyDays on 08-04-2007 06:33 PM

Anonymous · ‎08-04-2007

I am trying to refi and won't know until Tuesday this coming week if the deal is a go. If this works out, we will pay off $23K in revolving loan and this HSBC loan. Will this affect our fico scores in that all accounts will have a zero balance?

Anonymous · ‎08-04-2007

myhearts07 wrote:
I am trying to refi and won't know until Tuesday this coming week if the deal is a go. If this works out, we will pay off $23K in revolving loan and this HSBC loan. Will this affect our fico scores in that all accounts will have a zero balance?

I think that CC amounts mean more then other types of loans. So by paying them off or down will raise scores. I know that my auto loan had no affect on score.

By paying CC your util. goes down, which is what you want.

Anonymous · ‎08-04-2007

Okay, cool. That is good to know. We have had this account for just about a year and the balance is still $9560.00 paying $308/mo. I want to close this, but will it hurt us if we do?

Anonymous · ‎08-04-2007

If you have no baddies it will only show closed PAID. remember good stays on CR for 10 years

The baddies will show for 7 years.

Anonymous · ‎08-04-2007

By baddies do you mean lates? If so, no we were never late, the payments were taken directly out of our checking account.

Anonymous · ‎08-04-2007

woohooooooo. that gives you a good TL for 10 years!!!!!!!!!!!!!!!!!!!!!