Building credit

7 Replies

Hey there BP!

I went in to the bank to see if I get pre approved, my score is 710, but they said I need at least one installment loan on my credit history, they recommended me buying a car. I don't want to buy a car because I have one right now, is there any other type on loan that would be something similar, or other way to get an installment loan without getting a car? Like secured loan? any advice is appreciated! thanks! 

Is that the only bank you have tried at?  I would recommend trying multiple sources for the loan.  That way you know you're getting the best deal you can.

Originally posted by @Jose Sarabia :

Hey there BP!

I went in to the bank to see if I get pre approved, my score is 710, but they said I need at least one installment loan on my credit history, they recommended me buying a car. I don't want to buy a car because I have one right now, is there any other type on loan that would be something similar, or other way to get an installment loan without getting a car? Like secured loan? any advice is appreciated! thanks! 

 Idk your circumstances but if your looking to season an installment loan on your credit history maybe you can buy a new computer or iPad/iPhone from Apple or Dell. Let the loan season for 6-12 months and then payoff the balance. 

We used to buy dozens of laptops every year for my old business through Dell. I believe their loans are installment loans. You'd have to check Apple though because I've never bought any of their products using their financing.

And I also agree you should approach more banks chances are the bank you talked to is very conservative. There are many other lenders out there who are open to lending using different underwriting criteria. That said, lenders do look at payment history of similar type loans when underwriting for risk.

Get your full credit report, find out what are your major issues are and start fixing them

A 710 credit score is relatively strong. As long as your debt to income ratios are low, I don't see you having much of an issue securing financing somewhere.

I agree with the others - Shop around.

I agree with everyone above..  You are allowed a free credit report and if the bank pulled your credit you can ask them. 719 is decent.. I had this proble, with one bank and then realized and believed in myself that there are dozens of banks whom would love to have me as their customer, and I went elsewhere. 

Thank you for all the response and I will definitely try other banks and see if they will help me out

@Jose Sarabia

As long as you are generating a FICO score, and a 710 at that, you should not need to establish any new credit to be approved for a mortgage.  Please feel free to reach out to me for any assistance or if you have any questions I can answer for you.

Medium zk 2 pngZack Karp, Zachary Karp Mortgage Team, | [email protected] | 847‑387‑5513 | http://www.zacharykarp.com | Lender # NMLS 197896

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