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Rebuilding Q


kathyinIL
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I received an instant loan check from Wells Fargo Financial for $2315.86 (where do they get these amounts?) in the mail. It's a real check, like the ones Household sends out for instant note loans.

My question is would this be a good account for me to have for rebuilding? It's set up to be paid in installments, but there is no pre-pay penalty. I was thinking of depositing it, paying back $2000.00 right away, then paying the balance off over 6 months or so for history (the interest isn't killer, it's 19.9). Could this account go in the 'good' column on my report, or does the 'Financial' give it away as a desperation loan?

I don't need the money, but I could use the tradeline. Let me know what you think! Thanks!

kathy

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I have seen these before and have heard different opinions, both pro and con. Why not call them and ask how this will be reported, is it considered an Installment Loan, and any other question you may have. Your thoughts, to me, would be correct in creating a new TL. The only thing is it may cause score to go down for a couple of Months. Also, I would deposit the check and pay the loan back at a monthly amount exceeding the minimum for at least a year, then pay off. For some reason, a some lenders want at least one year of good pay history, while others want two years. Let this sit for a couple of days to get more input before you decide.

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