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Will a personal loan help my credit?


want to love my credit
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Ok I was told that my credit score was a little low and I have not had any activity on it in awhile so I am lacking payment history. Here is my question if I take out a small personal loan, as in $500 or less, will this help my score increase and if so roughly how long before I start to notice any difference in my score? ::ImInLove::

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Which score do you want to increase?  FICO has like 17 of them.  You want another CC? A small personal loan will increase the FICO Bank Card score (the "sucker score") by maybe 15-25 points.  You want a mortgage?  Build a savings account for the down payment...your current FICO Mortgage Score will be just fine.  You want a new car?  The personal loan won't help the FICO New Car score.

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Willing, aren't these just scores created by the individual banks and not individual FICOs scores maintained by Fair Isaac (myfico.com).  According to their website, there are 3 FICO scores, one for each bureau.  FICO does sell its scoring model to the banks and they each modify the scores to suit their own business needs.  

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I'm sorry...I have to say this again...

 

If I were legally allowed to claim I have knowledge of such things, my answer would be no...FICO does not sell their scoring models.  They sell the results of their calculations based on the information provided by the CRAs.  Their actual algorithms for arriving doing those calculations are a trade secret.

 

And, there are multiple algoritms...Consumer, Bank Card, Mortgage, Car Loan, Car Lease, Insurance, Medical, etc...each produces a separate score for each of the 3 major CRAs.

 

The algorithm that their web site refers to is the FICO Consumer Score.

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Happy new years! Will I am relating to everything you are saying about myfico and fako scores! I notice that when I checked my credit score after paying my 2 credits cards down to a$20 balance my fako scorl with equfiax,transunion and experian increased by 20 to 30 points however when I went to myfico my score only increased by 2 to 5 points. When I had my credit pulled for a mortgage my score was the same as myfico. I am trying to obtain a VA mortgage! What are some ways I can increase my credit score? I am looking for a 80 point increase! I would love to see it by the end of 2013... I am willing to do whatever it takes.. if it don't happen thi year I'm ok

Thanks

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Some banks use their own scoring criteria.  Their computer systems take the number they get from FICO and classify them into brackets.  For example, 750-800 might be "Class A", 700-850 "Class B"...etc. 

 

In effect, they don't want the front line "loan officers" to know the actual FICO score...

 

But, since the actual data that goes into calculating a score "belongs" to the CRAs, the banks find it easier to let FICO buy the data and work out the algorithms.

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