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pasquale88

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I received a springleaf loan offer, if i take it, will it hurt my already low score?
Im rebuilding credit, im up100pts but am still sub600 and springleaf offered a $1000 loan. Will taking the offer hurt my score?

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It depends on your current financial situation, but probably yes, it will hurt your score, at least to start with.  Every time you obtain new credit that is a hard inquiry, which brings your score down a few points.  If you already have too much open credit, that will hurt as well.  If your utilization is too high, then adding to your credit burden will damage your score.  However, if you are in the situation where you have little or no good debt, then although opening the loan may hurt to begin with, over time it will help drive your score up as you pay off the loan.  For more information specific to your situation, visit www.credit.about.com and click on tab "Repair Credit".  It's free and no sign-up needed.  Best of luck!

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SInce this will be a hard inquiry, it will initially increase the amount of Hard INquiries (Low Impact). Since it is a new loan it will also bring down the Age of your credit history (Medium Impact). It does however increase your total accounts (Low impact) and if it is considered revolving credit it may bring down your credit card usage (High impact) But morew often than not loans like that are not considered revolving Credit. (You can only borrow the $1000 once and then pay it off... that is not revolving)

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