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Is a 2-mo TL with Dell really going to help??


PolarBearnCO
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I just hit the "BUY" button with Dell. I bought a new laptop and external HDD. Total price, just under $2K, all financed with the Dell/CIT credit.

Since they want nearly 30% APR, I'm going to pay this off quickly! I'll pay 50% of current balance each month until there's $100 or less left, then I'll pay in full.

This will take 6 months. So, will this actually help my FICO scores? A lot? A little? Will it help just the same if I pay this off in only 2 months?

And, other question... with Dell, do I have a revolving account or installment loan? In other words, once paid off, will the account remain open? If it remains open, then I'll benefit with a $0 balance over a long period of time.

I'm sure a lot of ya know. Thanks!

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Well, how much it will help depends on the rest of your reports.

If you have little history, then yes it will help as the account ages. If you need another positive, then yes it will help. However, tradelines typically don't begin to count positively towards history until they reach the sixth month mark.

Paying it totally off may not help as much as keeping a small balance insofar as in most instances, FICO's model prefers a small amount revolving. However, with that interest, I'd pay it off as quickly as possible.

If you have a set monthly payment it "should" report as an installment. If you have only a minimum, it "should" report as a revolving line of credit. In either event, pay it off as soon as possible with that rate.

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haha... I have seriously considered buying this $3k bad boy right HERE several times. Only shear willpower has prevented me clicking that mouse.

Daddy want!

And that's after I told myself there's no way I'm allowed to buy the $4500 Alienware.

LOL. I wouldn't buy that thing for $500. What's the use of a laptop that weighs more than my bowling ball? 18+ lbs?!?!?!?!

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