Score Question

Discussion in 'Credit Talk' started by jfpruitt, Jul 25, 2001.

  1. jfpruitt

    jfpruitt Well-Known Member

    I recently got 4 of my inquiries deleted and my score jumped 8 points...Yepee!! But, here is my question. I recently received an installment loan to consolidate my revolving credit card debt. Since, I'm just transfering balances from one type of debt to another, will this increase my score?? I'll still have the overall same amount of total debt, except it will be an installment loan verses CC. Does anyone know how this will affect my score?? According to Credit Expert, my score will jump drastically?????
  2. the other

    the other Well-Known Member

    I don't know. creditExpert said that one factor that negatively affects my score is the presence of an installment loan other than a real estate loan. They said lenders look down on it because the fixed payments mean less flexibility.
  3. jfpruitt

    jfpruitt Well-Known Member

    Hmm..I didnt know this...this is considered a student loan, wonder what they think about that? Anyone know???
  4. Marie

    Marie Well-Known Member

    Yes, you're absolutely doing the right thing. A recent account will give a neg hit for only 6 mos or so but you need an active installment account and

    it's absolutely known that revolving debt (over installment debt) will KILL scores. No joke. I jumped 4% higher on revolving (artificially high to show cap1 limits) and it dunked my score 18 points. I know it's only a simulator, but my broker said the same thing.

    Oh, and of course if you have Target and Cap1 accounts their limits aren't showing so you're getting hurt there. You have to try and dispute the limits (hard) or just max the cards for a month, let the cycle close and post a high "high balance"... and then pay them off the next month. That'll help your ratios.

    If you sign up for YAHOO paydirect you can "move" 1,000 from a credit card into their account, wait til your credit card cycle closes, then move it back (you don't have to spend the money to accomplish this)..

    I also bought a few things at Target then returned them. I bought them right before my cycle closed so I didn't have to wait long to return the items.
  5. jfpruitt

    jfpruitt Well-Known Member

    I have credit expert and the simulator shows a major jump once my cards are paid off, but doesnt show anything about installment loans...
  6. Marie

    Marie Well-Known Member

    Remember the score simulator is just that. It's a guide for dummies.

    Less inquiries, more score.
    Less debt, more score.


    Don't ever expect a 1 to 1 correlation between x action and x points based on the simulator.

    I have heard from several reliable sources that revolving debt Kills scores, installment affects but not nearly as much (I'm talking ratios of balance to high credit).

    Your strategy is sound. Do it.
  7. the other

    the other Well-Known Member

    My installment loans are stafford loans.

    Presence of an installment loan (other than a real estate loan)

    Advice button pops up the following text:
    Installment loans can negatively affect your credit score because they carry fixed monthly payments, which some lenders feel may hamper your ability to meet other loan obligations. Reducing your existing installment loan(s) and carefully assessing your need for future installment loans should improve your credit score.

    I think you should still consolidate. It is better than having high balances on revolving accounts.

    My only concern is that this makes it sound like the "mix" we all thought we needed was wrong. It sounds like an installment loan takes points away unless it is a real estate loan.
  8. breeze

    breeze Well-Known Member

    Whatever you have on your report will reduce your score. :) I have figured it out.

  9. lbrown59

    lbrown59 Well-Known Member

    The name needs changed from credit score to credit sore!

  10. jfpruitt

    jfpruitt Well-Known Member

    so you think that my score wont increase once I pay off all my CC Debt?
  11. the other

    the other Well-Known Member

    I think it probably will go up. The revolving debt makes a large impact on the credit score.

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