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Is this a dumb idea?

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Is this a dumb idea?

I have an account in collections with Tek-Collect, they called me over the weekend and after talking with them, they said they would offer me a PFD if I paid it by Friday.. Well I do not have the money, but what I am thinking about doing is getting a personal loan thru OneMain for the $1200 and get the collections off my reports. Has a high rate (28%), but would also give me a positive tradeline and get the collections off my account sooner, and should be able to get it paid off within 2-3 months so might only cost me about $75 in interest. 

 

I currently have 5 collections on my account, one is paid (Portfilio Recovery, should fall off in two weeks).. another is paid, I am working on GW.. 2 more are set of hit the 7 year window this summer... and this one for $1200..

Begin of Journey ( 9/2018) EX 508 TU 506 EQ 498






Message 1 of 8
7 REPLIES 7
Community Leader
Mega Contributor

Re: Is this a dumb idea?


@jons998877 wrote:

I have an account in collections with Tek-Collect, they called me over the weekend and after talking with them, they said they would offer me a PFD if I paid it by Friday.. Well I do not have the money, but what I am thinking about doing is getting a personal loan thru OneMain for the $1200 and get the collections off my reports. Has a high rate (28%), but would also give me a positive tradeline and get the collections off my account sooner, and should be able to get it paid off within 2-3 months so might only cost me about $75 in interest. 

 

I currently have 5 collections on my account, one is paid (Portfilio Recovery, should fall off in two weeks).. another is paid, I am working on GW.. 2 more are set of hit the 7 year window this summer... and this one for $1200..


If they are willing to do PDF by Friday, they will be willing to do it at later time, too. It's a tactic to make you pay asap. 

 

If you will have enough money in 2-3 months , approach them again at that time. I would not take a loan at that insane APR, you never know what can happen. You have other negatives, so getting in more debt to remove only one derog is really not the wisest choice. 

 

Save up the money and contact them when ready. 

 

 

EX 759 EQ 774 TU 753


Message 2 of 8
Regular Contributor

Re: Is this a dumb idea?

Do not, I repeat do not take a loan from OneMain, unless you absolutely have to.  High interest rates, and they have some funky way of calculating interest.  One of the worst ideas I made...


Starting 5/2018

Current 3/2019
Message 3 of 8
Established Contributor

Re: Is this a dumb idea?

I have never borrowed from OneMain. Pursell1911's comment would make me think twice about that company.

 

Conceptually, though, I don't think it's a terrible idea if you are 100% confident you can pay it back in a short timeframe. As you say, it would create an additional positive account.

 

I don't see why the offer would REALLY expire after Friday, though.



FICO 8 scores are deceptively high. My profile is very young with a lot of recently opened accounts and large number of inquiries. No derogs. Over 5/24 until summer 2021.

Authorized user / Corporate

Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | Citi secured, $200, 045/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Unsecured personal loan from Coastal, $1,000, 05/19-08/19.

Goal cards: Ducks Unlimited, Chase Sapphire Reserve (or Preferred, haven't decided). Increased CLs across the board.
Long-term goal: Legitimate 770s on EX/EQ/TU, able to qualify for most normal credit products. Prime-rate mortgage.
Message 4 of 8
Contributor

Re: Is this a dumb idea?

I assume the offer would be out there later, but I guess never know..

 

And no question this will be paid back in 2-3 months, I am moving in with my GF this month so my expenses will go WAY down, plus I teach so my summer job will be all extra money I will use to pay it off

 

 

Begin of Journey ( 9/2018) EX 508 TU 506 EQ 498






Message 5 of 8
Regular Contributor
Regular Contributor

Re: Is this a dumb idea?


@Remedios wrote:

@jons998877 wrote:

I have an account in collections with Tek-Collect, they called me over the weekend and after talking with them, they said they would offer me a PFD if I paid it by Friday.. Well I do not have the money, but what I am thinking about doing is getting a personal loan thru OneMain for the $1200 and get the collections off my reports. Has a high rate (28%), but would also give me a positive tradeline and get the collections off my account sooner, and should be able to get it paid off within 2-3 months so might only cost me about $75 in interest. 

 

I currently have 5 collections on my account, one is paid (Portfilio Recovery, should fall off in two weeks).. another is paid, I am working on GW.. 2 more are set of hit the 7 year window this summer... and this one for $1200..


If they are willing to do PDF by Friday, they will be willing to do it at later time, too. It's a tactic to make you pay asap. 

 

If you will have enough money in 2-3 months , approach them again at that time. I would not take a loan at that insane APR, you never know what can happen. You have other negatives, so getting in more debt to remove only one derog is really not the wisest choice. 

 

Save up the money and contact them when ready. 

 

 


Im gonna second this.  Also I would make sure to have the PFD in writing and in my hands before I pay.  They can pretty much tell you anything to get you to pay asap. 

Message 7 of 8
Valued Contributor

Re: Is this a dumb idea?

No way would I take that loan.  Your instincts are already telling you its not a great idea so trust your gut.  On the PFD front,  tell them you will make installments to them if they put the PFD in writing.  If they are legit in their offer they will accept because they paid pennys on the dollar for your debt and they know they won't get paid unless they make the deal make sense.  

Message 8 of 8
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