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Advice Please Installment Loan

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Established Contributor

Re: Advice Please Installment Loan

^ I try to put disclaimers. As always, it's YEMV.

Looking at your signature, your profile is very robust. It may not benefit you but perhaps it could another member with a not so robust file.
Message 11 of 17
Established Contributor

Re: Advice Please Installment Loan


@AllZero wrote:
^ I try to put disclaimers. As always, it's YEMV.
Looking at your signature, your profile is very robust. It may not benefit you but perhaps it could another member with a not so robust file.

Just wanted to show the other side of the coin.

Have a daughter with only two credit cards and am not suggesting that she get a loan

She has 820+ scores with about 5 years history.

No: azeo, secret sauce, SSL's, posting large spend, high CL's, carrying balance, balance transfers, etc.

At some point I am sure she will need a loan, and that is when she should get it.

It only takes good payments and time.

Simple, but most want to make it complicated or believe in shortcuts.

 

FNBO 2% Cashback Visa (20k) / Bank of the West Cashback MC (20k)
US-Bank Cash+ (15k) / FNBO Travel Elite (15k) / Citi Double Cash (18k)
Ficos : 840 / AAoA : 9 yrs / AoOA : 23 Yrs / AoYA : 3
Message 12 of 17
New Contributor

Re: Advice Please Installment Loan

Big Thanks to all the thoughts.

 

I will not be taking the loan to chase a few points.   Don't need the AAOA ding and likely the smartest thing I can do for my score is just let time take care of the few inquiries i have, as well as age my accounts.  

 

A few years ago, while my credit was descent, I had a very thin file.  So I've worked the last couple of years establishing accounts and building relationships with various financial institutions.  While I still don't have an installment loan, I think I'll survive and see no reason to chase one that I don't need.

 

Thanks again.

|| || ||
Message 13 of 17
Established Contributor

Re: Advice Please Installment Loan


@CarolynArt wrote:
Congrats on the 25k loan pre approval. I’m with PenFed and sure wish they’d send me that 25k loan preApproval. High 700’s means like 780 ish? I’m at 723 Fico 9 at Pen Fed but I guess when I get to over 750 then I will qualify for the 25K loan. Nice !!!

If you've just become a PenFed member, I would expect you'll be receiving mailers soon. I'm not sure what criterias will qualify you for a loan check. Pay attention to the APR though. They've been known to fluctuate. E.g. one might be high. Few months later another mailer with lower APR.

Message 14 of 17
Established Contributor

Re: Advice Please Installment Loan


@MachoHombre wrote:

Big Thanks to all the thoughts.

 

I will not be taking the loan to chase a few points.   Don't need the AAOA ding and likely the smartest thing I can do for my score is just let time take care of the few inquiries i have, as well as age my accounts.  

 

A few years ago, while my credit was descent, I had a very thin file.  So I've worked the last couple of years establishing accounts and building relationships with various financial institutions.  While I still don't have an installment loan, I think I'll survive and see no reason to chase one that I don't need.

 

Thanks again.


Glad you've come to a decision that works best for you. You've got a line-up of cards with prime lenders.

Message 15 of 17
Super Contributor

Re: Advice Please Installment Loan


@MachoHombre wrote:

I have relatively strong credit score (high 700's), utilization near zero and all is good.

But, I don't have any installment loans.

 

One of my revolving account banks (PenFed) recently sent me a pre-approval on a personal loan up to 25K.   No gimimck, spend anyway I want etc.   I can set the durtion to up to 60 months.   Terms are NOT good (9.9%)

 

I have no need for a loan (actually I do have some upcoming expenses that I could put 10K to use for a month or two, but I certainly don't need it and no pain in my life without the loan.)

 

Finally to my question,

Should I take this offer, put the cash in my bank account.   Within a couple months pay back a HUGE percentage of the loan and then pay the tiny balance off over an extended time  -->with the goal of having an almost paid-off installment loan on my credit file for an extended time?

 

Here are my naive thoughts

--No credit check, I'm pre approved.  ..so no HP ding.

--New account will affect my score(?) (or will it? it's not a revolving account)

--Interest, I'll be paying a couple bucks in interest, but nothing significant cuz I'll immediatly pay off the vast majority of the loan even at 9.9% the tiny balance will create miniscule interest.

 

My gut tells me it's not worth messing with ...but am I missing an opportunity by not taking this offer and using it to have a solid installment loan on my credit file.

 

Any wisdom, (especially good wisdom LOL) appreciated.


Go with your guts.

 

1. You're doing fine without it.

2. You don't need to mire yourself down.

3. You don't need to shorten your average age of accounts, reduce your age of newest account, etc

4. PenFed won't let it stay open forever if you pay it down right away, they will accelerate the due dates.

 


Total revolving limits 720500 (594000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 16 of 17
Super Contributor

Re: Advice Please Installment Loan


@MachoHombre wrote:

Big Thanks to all the thoughts.

 

I will not be taking the loan to chase a few points.   Don't need the AAOA ding and likely the smartest thing I can do for my score is just let time take care of the few inquiries i have, as well as age my accounts.  

 

A few years ago, while my credit was descent, I had a very thin file.  So I've worked the last couple of years establishing accounts and building relationships with various financial institutions.  While I still don't have an installment loan, I think I'll survive and see no reason to chase one that I don't need.

 

Thanks again.


Good call Smiley Happy


Total revolving limits 720500 (594000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 17 of 17
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