but if you paid it off right away, would it be bad, being that the account will always be rated R0 (unrated), as opposed to R1? I would at least wait until it reports to the CRA's before paying it off. or maybe pay off 95% of the large loan amount, and leave a small balance so it stays on.... I have dont taht with chase bank. so my next payment of 299.11 is due in 11/04 --sheesh i'm on a roll posting on this thread
First off I personally believe the scoring programs are slightly different at each bureau. If for no other reason than they have different systems and the software used has been updated at different times. For example equifax beacon 96 is their latest while experian's risk score was updated in 98. It sounds like trimerge companies may have copies of the scoring software because some of them offer older scoring programs(some customers request the older scores to be consistent). Most banks do pull hard inquiries even though their money is 100% guaranteed. Incidently I'm still eager to see if anyone will see how many accounts a credit report will hold if you keep adding new accounts. With the golden1 you get a cd or I think you can actually just use a savings account then get the loan, pay it off a week later, get a loan pay it off a week later, etc all over the phone. An account a week, maybe it'll start bumping off your bad accounts at some point--although I've seen some pretty long credit reports.
I have got two secured (CDS)loans, one for 3,000 and one for 1,000. They were both done at regular banks in dec.2002. I went to several banks and i found a couple that would do the loan without checking my credit or putting on any hard hits on my report. These banks were smaller but they report all the same. Do you think its a good ideal to pay the loan off right away? I havent seen the new tradelines on my report yet so i'm not sure wheather my score will go up or down. When i find out about my score i will let you know? Anyone already delt with this? thanks gang, Lucas
Incidently I had another idea about cd secured loans. I think it would be possible to set up the accounts as joint accounts and get twice the bang for your buck. Also apparently the wescom here in southern california also doesn't do inquiries for cd secured loans. I've paid my cd secured loans off a week after I opened them and they still seem to show up fine on the credit reports and report about the same as if I had them open for a while.
Going back a few posts... I also tend to agree that the scoring model loves high limit revolving accounts. I have no real estate tradelines, one auto loan, 5-6 revolving lines (only one predates y2k, the rest are newer), no gas/retail cards, about $8k in revolving debt, and my MyFICO score has been holding steady at 750ish for over a year. When I bought my truck a year ago, GMAC pulled TU and I was in the 780's. At the time, my revolving lines included one at 24.5k and another at 17.5k. RM
So, it seems to me like the FICO wants to see old high limit credit/revolving accounts, not too many new ones and at least one large installment or auto loan(not necessarily a home loan). I still haven't seen any evidence whether or not auto loans or cd secured loans are differentiated from installment loans. It does seem though that alot of the rules of thumb for revolving accounts (balance to limit, age and closed status) don't apply to installment loans. Afterall most installment loans are fairly short term anyways and as long as they've been open at least a little while, you've proven you can handle the monthly payment(whereas cc's and heloc's monthly payment can go up substantially with interest rate fluctuations and cause default or even bankruptcy). If a mortgage loan is an ARM is that reported on your credit report? Maybe those hurt your score as well on the same theory that helocs can hurt your score if you max them out.
