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[Deleted outdated info about my credit situation. It has changed a lot in a short time.]
For anyone not aware, the idea is that Self Lender "lends" you $500, which they deposit into a CD. You make monthly payments, and at the end of the year after you've repaid the "loan", you get the money out of the CD. It ends up costing around $75 when all is said and done, and in return, you get a year of positive payment on an installment loan.
My question is: does this actually hurt credit in the short term? Or, can it, in a thin-file situation?
[More outdated info about my personal credit situation deleted.]
Thanks!
These Vantage scores don't really mean anything. I know you said you can't get FICO's yet but at times my Vantage scores have been 100 points higher or lower than my FICO scores.
Taking on a new loan:
One way to mitigate the impact is to pay down 35% of it as soon as possible. Doing so lowers the impact of the loan.
Also note that with Vantage scores they do not include closed accounts in your average age of accounts so adding a new account to a thin file of open accounts could have a very big impact. If that's the case it will have less of an impact on FICO where it includes your closed accounts.
[More outdated info about my personal situation deleted]
I'm not really worried about it, as I'm sure it'll be positive in the long run and I'm mainly interested in the long run, I was just surprised. Maybe it's just a glitch of the TU simulator.
Minor update. It is dropping my FAKOs around 30 points each. I know it's FAKO and not FICO. Still can't get my FICO scores except for EQ, which is the oddball in multiple ways for me.
Self Lender does not allow me to pay more than $48/month, and, I can't pay more than about two weeks early. I emailed to complain/ask about that. They told me that's the nature of the loan and if I paid most of it early, it wouldn't build credit as well. I am not sure if that's true or just their way of telling me not to bug them. But regardless, not worried about it, I know this process will take a while.
@KJinNC wrote:Minor update. It is dropping my FAKOs around 30 points each. I know it's FAKO and not FICO. Still can't get my FICO scores except for EQ, which is the oddball in multiple ways for me.
Self Lender does not allow me to pay more than $48/month, and, I can't pay more than about two weeks early. I emailed to complain/ask about that. They told me that's the nature of the loan and if I paid most of it early, it wouldn't build credit as well. I am not sure if that's true or just their way of telling me not to bug them. But regardless, not worried about it, I know this process will take a while.
It sounds like you're trying to do the SSL technique. Sadly, that won't work with Self Lender.
Usually your score will go down initially but after you make a payment it will go back up