Posted by Jasonrei on September 10, 2003 at 12:29:19:
First off, you want to know that they will report the tradeline to all 3 credit reporting agencies.
Whether or not it will help your credit scores depends on where you stand right now. If you have very good credit I think this might actually drop your score a little, since it will bring down the avg age of your accounts. If your credit isn’t so great this will help. Paying it off in 3 months is fine. Realize it might take 3 months before this tradeline actually shows up on your reports. You might want to do this at 2 different banks.
Lots of banks do these loans at $1000 or less, but they charge higher interest than 4%. You can certainly find one that will do smaller loans. Consider doing this at a bank you want to build a long-term relationship with.