Seeing the other post got me thinking, I have several accts cap one/summit being one that doesn't report as secured (opened 6/02 took a 33 point hit on EX) and a wells fargo installment for a A/C unit being another. Should all secured installment loans be listed as such and if they are not what sort of a points hit am I taking? Thanks for any info.
Now I am confused. You got a new installment loan and got a 33 point hit because of it? I am thinking of getting an installment loan just for the purpose of getting a point hike with it since the only account on my credit report is a credit card on which I am an AU so I feel I need more accounts. Will I get a lower score after the loan is reported anyway, or will that be good in my case since I have limited credit history? Will my score drop initially and then go back up after I show I am paying it off> Is it better to have a loan showing as secured or unsecured? I was under the impression that it was better to have an unsevured loan reported.
Yup, that is my question. Did having it list on my report last month as unsecured give me the big hit of 33 points, and should I call capone/summit and wells fargo to change the listing to secured.
First of all, of course you'll take a hit, your taking on another debt which is attributing to your credit/debt ratio, once you paid it off you should see your points return As for the listing as Secure or not, I doubt that has any effect.
Ok, now what if my debt to credit ratio increases even as I am taking an installment loan ? For example, I pay off on my credit card more than the amount of my new installment loan. Would I still get a score hit just by the fact of opening another credit account ( considering I only have one account and they tell me that one of the reasons that brings down my score is that I have less than 3 accounts) Thanks, Ioan
Paying off any amount debt should give you an increase in score, should help your utilization ratio. As for your example, let just say you pay off an amount on your credit card equivilant to the amount on you new installment loan, I highly doubt anyone can precisly guess what you'll gain back as this is where George's RNG factor comes in IMO. There are other factors to consider like age of your accounts and so on...
OK, now, beyond the RNG effects, can I at least get some consensus on this board that getting an installment loan will help my score in mid to long term ( 6 months) assuming of course I keep paying everything on time and my total debt/CL ratio goes down or stays constant? thanks, Ioan
