What is a Personal Line Of Credit
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Posted: Wed Aug 04, 2004 9:44 pm
Post subject: What is a Personal Line Of Credit
eddie
Date: 7/23/2001 6:39 pm CDT
I would like to know which is better: the personal unsecured installment loan, or the personal unsecured line of credit.
I have a score of 690. total credit available on cards: 24,000 and only using 1200. always pay in full.
I want a 25,000 to help me start a business, but I don't have collateral, that's why I want personal loans.
does the istallment account comes with a higher credit line.
is it true that the installment will build a credit whereas the line of credit will damage it (decrease my score).
PLEASE TELL ME YOUR SUGGESTIONS, OPINIONS.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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Posted: Wed Aug 04, 2004 9:44 pm
Post subject: What is a Personal Line Of Credit
dave
Date: 7/23/2001 7:32 pm CDT
The advantage of the line of credit is that you can use it only when you need it and then re-use it as you pay it down. This would save money on finance charges and give you the flexibility to borrow again without going through the hassle of a new app. if you need money again.
An installment loan coupled with your existing revolving credit may yield a higher score. "Mix of credit" (e.g., revolving bank cards, retail, charge cards, installment credit, mortgages)is an element in the calculation of credit scores but its exact signficance is not really understood outside the group of wackos that create the credit scoring models. Having all of one type is not as good as having a variety. Why this is important is beyond me but it does affect the score.
If you apply for a business line of credit (which may be difficult to get since this is a startup), the line would not even appear on your personal credit report unless you default. This has advantages, too.
Overall, I think the line of credit is better than the installment loan (all other things including APR being equal) if you don't need the whole 25K right away. Don't worry so much about the credit score. It will take care of itself over time especially after your business gets going and you really start kicking some *****.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Aug 04, 2004 9:45 pm
Post subject: What is a Personal Line Of Credit
eddie
Date: 7/24/2001 12:33 am CDT
thank you dave a lot for this valiable information.
it really helps me.
Posted: Wed Aug 04, 2004 9:44 pm
Post subject: What is a Personal Line Of Credit
eddie
Date: 7/23/2001 6:39 pm CDT
I would like to know which is better: the personal unsecured installment loan, or the personal unsecured line of credit.
I have a score of 690. total credit available on cards: 24,000 and only using 1200. always pay in full.
I want a 25,000 to help me start a business, but I don't have collateral, that's why I want personal loans.
does the istallment account comes with a higher credit line.
is it true that the installment will build a credit whereas the line of credit will damage it (decrease my score).
PLEASE TELL ME YOUR SUGGESTIONS, OPINIONS.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Aug 04, 2004 9:44 pm
Post subject: What is a Personal Line Of Credit
dave
Date: 7/23/2001 7:32 pm CDT
The advantage of the line of credit is that you can use it only when you need it and then re-use it as you pay it down. This would save money on finance charges and give you the flexibility to borrow again without going through the hassle of a new app. if you need money again.
An installment loan coupled with your existing revolving credit may yield a higher score. "Mix of credit" (e.g., revolving bank cards, retail, charge cards, installment credit, mortgages)is an element in the calculation of credit scores but its exact signficance is not really understood outside the group of wackos that create the credit scoring models. Having all of one type is not as good as having a variety. Why this is important is beyond me but it does affect the score.
If you apply for a business line of credit (which may be difficult to get since this is a startup), the line would not even appear on your personal credit report unless you default. This has advantages, too.
Overall, I think the line of credit is better than the installment loan (all other things including APR being equal) if you don't need the whole 25K right away. Don't worry so much about the credit score. It will take care of itself over time especially after your business gets going and you really start kicking some *****.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Aug 04, 2004 9:45 pm
Post subject: What is a Personal Line Of Credit
eddie
Date: 7/24/2001 12:33 am CDT
thank you dave a lot for this valiable information.
it really helps me.
posted by CardRatings.com at 1:35 PM
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