This is a question on american general finance. I have heard that a sub prime lender loan will actually lower your score because it is not a regular bank. Is this true? I took out a 1000 loan a month ago. It has not hit my credit report yet. I have paid half of it back and will make payments of $100 per month until it is paid. At the end will my score be lower because of this? I have 10 good trade lines and 2 bad lines and my negative influence says I have too many bad compared to good which is ludicrous but I am trying. thanks for any advice.
Hi Picantel, I think when your process is complete and your loan paid off the good pmt record will overshadow the fact that AmGen is subprime. Don't worry, just keep those pmts goin in on time and you'll get a little boost.
Butch, I wonder, does/could having a sub prime installment loan on your credit actually lower your score, or does it simply not look as good when your credit is manually reviewed? I would think, as long as it is not listed as a secured installment loan, it would only help your score, just as long as you're paid/never late that is.
Good Q'? MC, I'm not sure but I suspect, with technology the way it is today, there's an alert mechanism that flashes SUB PRIME. Or some such other nonsense. Once the acct is pd with a perfect history I'm sure that won't matter tho. The good outweighs the bad so to speak. The good news I guess is that Picantel can *request* a manual review and point this out, "sure it's sub but look at this payment history wouldya'. Just in case the lender has trouble rubbing 2 brain cells together.
Oh I see your point MC, My thinking was even if the sub prime AmGen lowers the score temporarily it's probably not by much. I think the point boost P will get when it's paid off will more than offset it, thus result in a bit of a boost. Or, ya may be right. Maybe she already has the boost because of the good pmt record. She's actually paid ahead from what I could glean from her post. I don't really know much about scoring but that's my take because it makes the most sense, at least to me. lol
Since American General Finance is also in the prime market through their banking, insurance and asset management, I do not believe it WOULD show as a "sub-prime" -their credit card is certainly not "sub prime".
Yeah, me too. LOL The original poster should keep us updated on her score/situation with this loan when she pays it off to a $0 balance.
My experience with finance co listings is this: I have 4 student loan - education loans thru wells fargo financial for IT training. When Amex denied me, they said it was because my loans were not reporting as education loans, but rather as plain personal finance co. loans. I disputed them, asking cra's to report as student loans. The end result was they were changed to show as educational loans. But, wells fargo for some reason did not respond to one of the requests to verify and it was deleted. The combo of one deleted and the other changed to student loans was about a 50 pt. gain. I was then immediately approved for my amex. It is impossible to figure out because when I got the last student loan reporting, my score also increased by about 15 pts.
