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rated:
stanolshefski said:   
thealimo919 said:   CD-secured loans question:

Are there any negative effects to credit score if one pays a CD-secured loan off early? I have a couple of relatives with mediocre scores and want to recommend that they:
1. Open up a CD
2. Open up a 6-12 month CD-secured loan
3. Pay off loan after a week

Would this result in a paid off 6-12 month loan on their CR? TIA

  You need to ask the bank to see if they report the loans.

  
Thank you.  Assuming the bank reports the loans, if my relatives pay the loans off early (~1 week after receiving the loan), will the loans report the same as a 6 month loan that was paid off after 6 months?  

rated:
thealimo919 said:   
stanolshefski said:   
thealimo919 said:   CD-secured loans question:

Are there any negative effects to credit score if one pays a CD-secured loan off early? I have a couple of relatives with mediocre scores and want to recommend that they:
1. Open up a CD
2. Open up a 6-12 month CD-secured loan
3. Pay off loan after a week

Would this result in a paid off 6-12 month loan on their CR? TIA

  You need to ask the bank to see if they report the loans.

  
Thank you.  Assuming the bank reports the loans, if my relatives pay the loans off early (~1 week after receiving the loan), will the loans report the same as a 6 month loan that was paid off after 6 months?  

  
No, it may not even make it on to the report and if it did it'll probably just report zero balance like they never even got the loan.

I don't think this is the best way to help your relatives improve their scores.

rated:
thealimo919 said:   Assuming the bank reports the loans, if my relatives pay the loans off early (~1 week after receiving the loan), will the loans report the same as a 6 month loan that was paid off after 6 months?  It can't possibly look the same. The record on the report for a 6-months loan will have a payments history over 6 months. In this case, even if it shows up on the report, it would only show 1 month of payments.

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