Quick question credit novice

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Re: Quick question credit novice

Postby PhillyPhoto » Thu Aug 25, 2016 8:23 am

BeauDez wrote:I do have a related question, how does a Personal Loan factor into everything? If I took out a Loan for, say, $5,000, does that get calculated into my Credit Utilization? My current total available credit is around 24K. The only balance is a ~$1200 balance on the card I'm an AU on. Would the loan make my Available Credit $29K, with $6200 utilization at the time the loan begin? Or, is it somehow calculated separately? Also, how would a closed loan effect your AAoA? Let's say I take out a 24 month loan and pay it off on time. I know it still shows up on the credit report for a number of years after being closed, but does it still effect AAoA once it's closed? If so, does it's influence continue to accumulate after the loan is closed, or is it capped at the term of the loan?

Sorry for the questions. I feel like I have a newbs grasp after reading various articles and posts, but those are some questions that aren't very clear to me.

First, it's better to ask questions and learn before doing than having regret after. I learn things here all the time, even if I'm not the one asking the questions. I didn't realize accounts remained on my score for 10 years, so now I'm more conscious of the cards I look at and see if they're really a good fit for me so I don't decide after I don't want them and close them right away.

Loans don't get factored in to utilization, as they are just loans. So they show up as part of the overall debt you owe, but not on the revolving credit side. CU is just for revolving credit (credit cards, store cards etc), but I'm not sure how charge cards are considered. Let's say you have an Amex Gold card with a $5000 balance, and a regular credit card with a $5000 limit, but $0 balance. There's no limit on the Gold card, and you have $5k on it, and your only other line is for $5k. I don't know if that show's utilization as 100% or 0%, with $5k is other debt. As far as the age of the loan, I believe it will show up for 10 years, and if it's paid in full with no late payments, that's a good thing to have, even if it is closed.
Main Cards:
Amex: Ameriprise Plat, Surpass
Chase: Hyatt

Sock drawer Cards:
Amex: HHonors
Chase: Amazon Rewards, Freedom
Citi: Macy's Amex, Simplicity, ThankYou
Citizens Bank: Cash Back Plus World
Discover: it
Elan: Bank Rewards
Synchrony: PayPal

755 Eq (12/16)|748 TU (12/16)|726 Ex (1/17)

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