@Anonymous wrote:
Have score in high 700s (with no personal loan history at all) and I'm wondering how much would taking one help with the score? Esp. one with relatively low amount (i.e. lower than my credit card CL), would that still increase the scores in a meaningful way despite the HP due to gaining a different type of credit on my record (i.e. over 800 would be great) or not so much (such as increase a few points only)? Would it make any difference if I pay it off sooner than the term(i.e. would that result in less increase in the score? because it would mean less interest payment)?
Actual example(s) would be highly appreciated!
Hello SmithJohn! The relevant question is not whether you have any history of personal loans, but whether you currently have an open installment loan of any kind (personal loan, student loan, auto loan, mortgage, etc.).
If you have no such open loan, then the Share Secure loan technique you were referred to will definitely give you a big boost. If you already have one (of any type) then adding a personal loan won't help in any significant way (or not at all).
Either way, reading the first two posts in that thread will likely help you understand more about how FICO assesses installment loan debt. You can use those principles for predicting the impact of paying down an auto loan, paying down student loans, etc.-- as well as the possibly negative impact from paying off a loan altogether.
