Installment loan question......

[Anonymous]

So I current have $1020 in CC debt not that much for me and having zero issues paying it down. I have never had a installment loan other than a vehicle. I’m wondering if getting a installment loan for $1100 to pay off CC debt and then paying off the installment loan will help me. I’d prob pay the installment loan off early and lending tree has me preapproved for $1200... and I’d pay about $500 a month towards it. Any advice appreciated. I don’t like being in debt or paying interest so I’d want to pay it off quicker.

[Anonymous]

Why do you think paying off an installment loan in 2-3 months will "help" you.  I would say just pay the cards off and skip the loan.  I would let a small balance report on 1 of the cards every month.  FICO scores don't like 0% revolving utilization. 

[Anonymous]

I don’t think that the paying off of the installment loan quickly will help. I only have 2 account types on my history ever and it’s just auto loans and credit cards. I was thinking the installment loan will help because it will be a different type of loan reporting besides auto or CC and I will have it in good standing. That’s what I’m asking if adding a positive installment account to my report will boost my score. I know paying it off early won’t bump me any.

[Pikaboo-icu]

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@Anonymous wrote:
I don’t think that the paying off of the installment loan quickly will help. I only have 2 account types on my history ever and it’s just auto loans and credit cards. I was thinking the installment loan will help because it will be a different type of loan reporting besides auto or CC and I will have it in good standing. That’s what I’m asking if adding a positive installment account to my report will boost my score. I know paying it off early won’t bump me any.

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A car loan is an installment loan. They code exactly the same. 

[gdale6]

forget the installment loan and just pay off revolving and let 20-30 a month report on one card only. You will take a score hit for the inquiry and a new account and it will stay around even after paying off the loan in a few months.

[Anonymous]

Ok thank you guys @gdale6 and @Pikaboo-icu that is the question. I ask because Credit Sesame says that I should get an installment loan to pay off my debt because the loan will at an account type to my history and make it look better. I thought that was weird. So I came here to ask.

[gdale6]

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@Anonymous wrote:
@Anonymous thank you guys @gdale6 and @Pikaboo-icu that is the question. I ask because Credit Sesame says that I should get an installment loan to pay off my debt because the loan will at an account type to my history and make it look better. I thought that was weird. So I came here to ask.

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Take all their offers and ones at Credit Karma with a grain of salt they get paid for the click thru referral and I do believe extra if you get the card or loan.

[Anonymous]

Yeah I kind of figured, I kept being told that I would qualify for an AMEX and I didn't buy it, so I went to amex site and was pre qual. Still didn't apply. Then mailers started showing up, I applied after anything pre qual check and was approved. Now everyone is saying to request a x3 CLI after the waiting period. I was debating on transferring both balances to the AMEX since its 0% intro rate for 18mo. I will prob do that after my recent payments post.