Loans NOT for homes or autos

[Anonymous]

Hey everyone! I'm going to making a rather large purchase. It'll be in excess of $8000 but it is not for a home or a car. I'm 24, have a few credit cards but nothing with a limit that I'll need for such a purchase. I have the cash to simply purchase what I need but I would like to use this opportunity to build some credit. Two questions... one, what kind of installment loan should I be looking for (from a bank or otherwise)? And two, given that I don't have any credit cards with say a $10,000 limit, will it even be likely for me to get a loan from a bank? In other words, will I be wasting my time looking into loans that I may not have a chance of getting? Oh, one last question... if I get this loan, is it advisable to pay it off *immediately* (since I can) or let it ride for a few months (or years)? My FICO scores rate me at the low end of good (forgive me I'm a student HAHA) or the high end of fair. Like I said, I have the cash to just out right buy. Any thoughts? I'd love to hear some of your feedback on the matter.

[George2037]

Some banks will let you take a loan based on savings, CD's or any account you hold with them.  If you have the ability to pay it off, I assume you have the cash.  If you do go tak to your bank and tell them what your doing, and want to take a loan out just for the pure purpose of building credit.  They should be able to help you find the loan and how to obtain it.  Just becarefull of Pesonal Loans, some actually hurt your credit by being listed as Consumer Loans.

[MidnightVoice]

Also, local Credit Unions are very good for establishing credit and loans such as this.  It might well be worth having a relationship with one.

[Anonymous]

Thanks for the quick replies. So I've been doing a little more research and it seems I should just pay with cash. I don't think I'll get a credit card with a high enough limit and personal loans seem to be bad for credit scores. Would anyone agree? -A

[George2037]

Not all personal loans are bad, just with certain banks (i.e. Citi Financial), a Personal Loan is differant than a Consumer Loan.  See if you can find a Credit Union that you qualify for, if your in school check with the business office to see if they are associated with one.  A Credit Union will most definatly have a product that will fit your need.

My CU will lend up to the balance of my savings account at the time of application as a Personal Loan.