Hi Everyone,
I just received an Amex PL offer for $19,000 and have the following doubts/questions...
1. Will this show on my credit report immediatelly? My Amex statement closes 10/6, will it be in this statement?
2. Am I able to do BOTH pay some credit cards and also receive the rest of the funds as Direct deposit? Or have to choose only one of the options?
3. I was about to apply for my 2nd Amex buss. card, will/can a PL affect a theoretical approval or a lower SL? I was just approved for a $13,200 SL Amex BBP last week. Does Amex count all the credit they are extending as a whole? Or would my file be given a certain amount for revolvers and a different one for PL?
4. Can I expect any type of boost in my scores just for changing the debt from revolver to installment? I have 33K revolver debt out of 77K TCL, so it would end up 14k revolver and 19k Amex PL, installment.
It would be my first PL, and my file always points out the lack of installment loans as a reason for losing points. All help and/or DP are greatly appreciated, thx.
@WP2020 wrote:Hi Everyone,
I just received an Amex PL offer for $19,000 and have the following doubts/questions...
1. Will this show on my credit report immediatelly? My Amex statement closes 10/6, will it be in this statement?
2. Am I able to do BOTH pay some credit cards and also receive the rest of the funds as Direct deposit? Or have to choose only one of the options?
3. I was about to apply for my 2nd Amex buss. card, will/can a PL affect a theoretical approval or a lower SL? I was just approved for a $13,200 SL Amex BBP last week. Does Amex count all the credit they are extending as a whole? Or would my file be given a certain amount for revolvers and a different one for PL?
4. Can I expect any type of boost in my scores just for changing the debt from revolver to installment? I have 33K revolver debt out of 77K TCL, so it would end up 14k revolver and 19k Amex PL, installment.
It would be my first PL, and my file always points out the lack of installment loans as a reason for losing points. All help and/or DP are greatly appreciated, thx.
I'm not sure about all your questions, but I can help with some.
For #1, no, it won't be included in your existing statement--it will be a separate account, with a separate number, separate closing date/due date, etc. I don't know how long it will take to report, but I'm guessing one billing cycle most likely.
For #2, I'm a little confused! If it's a personal loan, you can do whatever you want with the funds, after they're in your checking account. Please clarify if there's something else going on here. 
I'm confused on #4, too. How are you changing the debt from revolver to loan? Either I'm just grossly misunderstanding the product you're referring to, or...I don't know what! As for boosting your score....NO!! If anything, you're likely to see quite a drop, initially. That's because when a loan is new, your utilization rate is VERY high; it takes a long time for that to go down.
As I see it, if this is a personal loan, you can just choose direct deposit into your checking account and take it from there--pay off CCs, let the money sit, whatever. And if it is indeed a PL, it's a whole new account, separate from any exisiting CCs you have with Amex. How or if it will impact decisions on future applications with Amex, I don't know.
@SoCalGardener Hi, thx for your input.
For #2, I meant when you are doing the application Amex asks if you want to pay credit cards or receive it as Direct Deposit. My question was if you can do both meaning tell Amex to pay say $10,000 to credit cards and say the rest, $9,000 to my bank account.
For #4, I thought if I shifted cc debt to an installment loan I would lower my utiliz. on cc debts and therefore score would rise. Of course, I would owe the same money but on the installment loan side which they see it as best. I read around and it did seem scores would rise, but thats why Im asking maybe I misunderstood. Can you confirm?
Yes, its a Personal Loan so it should be a new account just as you mentioned.
@cashorcharge Thanks for your answers...
On 2. Would you know if they will pay some cc and then send you the rest to your bank as I described on my last message?
4. So, If I lowered my cc debt by 19K which would take me from 44 % to 18 % utiliz. on my credit cards it wouldnt give me a big increase? Of course I would have the 19K debt in a new installment loan account, and I know the debt I owe is still the same amount but I read MANY threads and I was under the impression that shifting the debt to an installment loan would greatly benefit my score. Please anyone that can confirm and sorry if Im mistaken but I thought I read it in many threads here in this forum.
Yes thanks, I know Amex doesnt work as the SSL trick does.
@WP2020 wrote:@SoCalGardener Hi, thx for your input.
For #2, I meant when you are doing the application Amex asks if you want to pay credit cards or receive it as Direct Deposit. My question was if you can do both meaning tell Amex to pay say $10,000 to credit cards and say the rest, $9,000 to my bank account.
For #4, I thought if I shifted cc debt to an installment loan I would lower my utiliz. on cc debts and therefore score would rise. Of course, I would owe the same money but on the installment loan side which they see it as best. I read around and it did seem scores would rise, but thats why Im asking maybe I misunderstood. Can you confirm?
Yes, its a Personal Loan so it should be a new account just as you mentioned.
Thanks for clarifying!
Okay, then for #2, I don't KNOW, but I don't think you can have them split it into multiple destinations. Personally, I would just have the funds deposited in my checking account, then pay the CCs off myself.
And for #4, yes, you're basically keeping the same debt, just shifting it around. But you're going to take a hit, initially, for two reasons: one, your overall debt will increase--until all the reporting from paid-off cards gets done, you'll appear to have twice as much debt as you actually do; two, the new loan will have 100% utilization when it's first reported. So it's going to take some patience while all the processing/reporting gets done, and as you wait for your loan utilization to drop as you make payments.
@WP2020 wrote:@cashorcharge Thanks for your answers...
On 2. Would you know if they will pay some cc and then send you the rest to your bank as I described on my last message?
4. So, If I lowered my cc debt by 19K which would take me from 44 % to 18 % utiliz. on my credit cards it wouldnt give me a big increase? Of course I would have the 19K debt in a new installment loan account, and I know the debt I owe is still the same amount but I read MANY threads and I was under the impression that shifting the debt to an installment loan would greatly benefit my score. Please anyone that can confirm and sorry if Im mistaken but I thought I read it in many threads here in this forum.
Yes thanks, I know Amex doesnt work as the SSL trick does.
Sure you should see some score improvement when you reducing utilization down pass scoreable threshold(s), you would see even more improvement if you apply the loan in such way that will also bring down your individual utilizations. If your signature are accurate, you have 3 are essentially maxed and 1 nearly maxed at 86%, so bring them all down equally would be beneficial, more if reducing the "number of revolving reporting a balance" down from 6/10 to 3/10 better yet just 1/10. I understand you may not want to as 2 maybe in the BT promo interest rate.
The new account score penalties can be overcome by account mix alone. I don't know if personal loans is same as auto loan in FICO's eyes (secured vs unsecured) when I went from no installment loan to one? I gain 17 points in FICO 8, tho, it did drop 30 points first when the old auto loan report closed but that doesn't apply here.
