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Finish first self lender? Now what

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Established Member

Finish first self lender? Now what

I have 4 credit cards, total CL is $30k, very low utilization (like 5%), my score is 743, no other installment loan beside self lender. I will finish my first self lender on may 2019. 

What is my option to have installment loans in my credit report. Should i do second self lender for 24 months?

I tried the alliant unsecured loan but they denied me. Dont know what is other option? 

 

My goal is to have credit score near 780. 

Thank you so much

Current Score:10/23/2018 Score 8 EQ 744 TU 751 EX 731
Inquiries:
Last 3 months: 2
Last 6 months: 10
Oldest Account: 7.1 year(s)
Average Account Age: 1.8 year (s)
No BK, No Derog,
SPG Amex: $10k SL - Amex BCE: $4k SL- Boa Cash Reward: $3k SL- Discover IT: $1k SL
5 other credit cards as AU - Total credit limit: $21k
Message 1 of 6
5 REPLIES 5
New Contributor

Re: Finish first self lender? Now what

That's a tough call. Are you looking to do anything in particular in the short term that warrants a 780 credit score or are you looking to get a 780 score just because you want a 780 score?

 

I'm sure I'll be faced with this decision at some point.  Do I just let the chips fall where they may, or do I spend money that I don't really have just because my score looks good on paper?

 

I guess that part about the FICO scoring system I think is unfair.. You maintain a mortgage for 30 years, pay 100,000.00 in interest and as soon as you pay it off, you get penalized for having no open installments.

 

I also have a self lender account and I'm paying 10.69% interest.. 10.69% on my own money to establish credit,,,

 

I also opened a secured accout with my current bank and the interest is only 3%.. So I would suggest opening a secured account with a bank if you want to go directly into another secured loan.

Last Inquiry 11/8/2018 (QS1 approved $300.00)
Fico Score Progression :
10/1/2018 EQ 530 TU 535 EX 540
12/16/2018 EQ 630 TU 621 EX 636
12/27/2018 EQ 639 TU 628 EX 634
6/6/2019 EQ 626 TU 565 EX 614
7/17/2019 EQ 644 TU 641 EX 678
8/10/2019 EQ 650 TU 757 EX 684
In the garden till 1/1/2020
Message 2 of 6
Established Member

Re: Finish first self lender? Now what

I just hate the dipping points for not having installment loan. I just like the 780 score threshold. In the next 4 years, i plan to have mortgage so it is nice to keep good score until then.

 

Current Score:10/23/2018 Score 8 EQ 744 TU 751 EX 731
Inquiries:
Last 3 months: 2
Last 6 months: 10
Oldest Account: 7.1 year(s)
Average Account Age: 1.8 year (s)
No BK, No Derog,
SPG Amex: $10k SL - Amex BCE: $4k SL- Boa Cash Reward: $3k SL- Discover IT: $1k SL
5 other credit cards as AU - Total credit limit: $21k
Message 3 of 6
Senior Contributor

Re: Finish first self lender? Now what

Yeah its nice. There are some on here (cant remember who) who dont even have a installment loan and still in the 800's. Tough decision. Good Luck!





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 4 of 6
Established Member

Re: Finish first self lender? Now what

I got a Mortgage in 2012 with a 720 score at 3.75%.

In my opinion, I wouldn't pay interest on another installment loan just to have it on the score if you can already get the best rates by being over 700+, unless your preferred lender is asking for that super high score.
Message 5 of 6
Community Leader
Super Contributor

Re: Finish first self lender? Now what

@IVY86  Your scores are high enough now where you dont need to play reindeer with scoring 

 

Points gets lost when loan is paid off, but closed loan still contributes to credit mix. 

If you get another loan, you can expect another score drop (new account penalty, fully utilized loan, damage to AAoA). By the time your scores recover, it will be closed again. 

 

If you get another loan, eventually you'll get that artificial inflation, but that will go away, too. Then, should you go for a third one, even more damages. So, your chase for 780 will be the thing preventing you from maintaining 780. 

 

Best thing you can do is let the time do it's thing. You have 10 new accounts in the last six months, two of which in the last two months. . That's a lot and that's keeping your scores suppressed. If you allow youngest to reach a year, you would see at least 20 point gain. 

 

I'd slow my roll if I were you 

 

For the reference, my scores range from 760 to 770, without an active loan and with three infant accounts. 

 

Good luck! 

 

 

EX 754 EQ 773 TU 752
Message 6 of 6
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