OK... DH got a loan pre-approval from Citifinancial today... I know for most people finance co. tradelines tank scores and the interest is way high, BUT he really, really needs positive tradelines... he has between 2-4 derogs on each report and 3 positives on all (2 current CCs and 1 auto loan from 10 years ago). Will taking this loan and then paying it back within the next 3 or 4 months help him or hurt him score wise? Any feedback appreciated.
If it were me I'd take it. Sometimes it hurts the score in the first month because there is now more debt than before, but as soon as the payments start showing up it should help the score. I'm not that knowledgable with the way subprime loans effect your score, but in general a positive tradeline is a good tradeline.
no rate info yet, but I am assuming it is high according to past posts (19 to 25%)-- even better reason to pay it back fast
I had a citifinancial loan for a hot tub - it was 0% for 6 months then would go up astronomically, to like 24% or something. We paid it off within the time limit, however, so we were not affected by the rate. I am not sure how it affected my scores. I always seem to hover around 650 no matter what I do....
