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If I need a personal loan for let's say $15,000, would it be better for my FICO if I were to take a loan for $20,000 and then immediately repay $5,000. I understand that the payments won't change but if there is no prepayment penalty, and the difference in APR is negligible -- doesn't this give me a better utilization?
Every banker that I have proposed this to or asked has looked at me like I had horns.
@Anonymous wrote:If I need a personal loan for let's say $15,000, would it be better for my FICO if I were to take a loan for $20,000 and then immediately repay $5,000. I understand that the payments won't change but if there is no prepayment penalty, and the difference in APR is negligible -- doesn't this give me a better utilization?
Every banker that I have proposed this to or asked has looked at me like I had horns.
@Anonymous.. you could do like me on a $25K Installment,
let it report @ 100% and watch your Experian score drop -27 points . (and yes ..I am dead serious)
Glad FICO8 has no memory, because it will report at almost paid next month.
Shoulda just pulled the money out of HSBC.
It was a good test though ..
ETA: The good part is, I will have an open installment loan reporting with a small balance for 5+ years!
@Anonymous wrote:If I need a personal loan for let's say $15,000, would it be better for my FICO if I were to take a loan for $20,000 and then immediately repay $5,000. I understand that the payments won't change but if there is no prepayment penalty, and the difference in APR is negligible -- doesn't this give me a better utilization?
Every banker that I have proposed this to or asked has looked at me like I had horns.
Bankers are too practical to appreciate your genius 😆