Personal Finance Loans=Negative Credit Notation

Personal Finance Loans

Personal Finance Loans

Debt in Crosshairs (Photo credit: Brad_Chaffee

I’ll keep this short and sweet.  There is a separate section in your Credit Reporting that simply notes as a favorable factor that you have no Personal Finance Loans.  If you do have personal finance loans it counts unfavorably even if you are current.  Try to find another route if you need to raise cash fast.  Credit cards specific to a certain store such as Macys, Nordstrom, Home Depot and the like are fine if kept to a limited amount and paid on time.  Not all of these report to all 3 major credit reporting agencies.

Don’t Believe Personal Finance Loans Raise Your Credit Score

Most people have probably heard of “Finger hut.”  Finger hut sends out catalogs with a lot of overpriced household junk which can be bought on credit.  For those who feel shut out of the world of credit it seems like one way to get started.  The interest rates they charge are very high. The prices on the items they offer are very high as well. If you think that making the payments on time will help you establish a credit history you are going to be disappointed.  In order to help you in that way they would have  to make regular reports to the 3 major credit bureaus.  They don’t.  The same is true for pay day loans and most of the low credit score loans available on the internet.  If you mess up it will hurt you but it can’t help you.

Get a Secured Credit Card Instead of personal finance loans

If your motivation in getting personal finance loans is to help your credit score you should look into a secured credit card for that purpose instead.  These cards require that you deposit money into an account as security for credit in whatever amount you deposit.  If you deposit $300.00 for instance you can charge up to $300.00 as if it were a regular credit card.  Pay it religiously when due and you will be starting a good track record to build up your score.  Later on you can move up the ladder to an unsecured card.  These cards advertise on Credit Karma and other free sites.

Personal finance loans are for dire emergencies only

I don’t approach my columns from an ivory tower.  I’m aware that there are setbacks in life that come at the worst possible time.  Not to be overly dramatic but when the baby is hungry the parent is not caring too much about the details of credit scoring.  If you have to resort to personal finance loans make sure it is the first thing you pay off when things turn around for you.

Personal finance loans will haunt your credit history for 7 years.


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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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