financing/credit question

[Alfer]

Hello all.

I just recently established my credit with my first credit card. I have no derrogatory reports, one open account showing that I am carrying less than 10% of my spending limit as a balance, and my Experian Credit Expert score is 717.

Now. I was going to borrow from Prosper $1,000 for some work I had to do on my car but didn't want to deplete my savings. My intentions were to pay a few months worth of installments and then pay off the remaining balance for the good credit reporting.. but using experian, Prosper rates me as "High Risk."

Prosper considers me High Risk, despite my 717 credit score, will an auto lender rank me the same? The reason I'm asking is I have 11 inqueries in the past two years from where I was trying to get established and I would like to trade my car in for a minor upgrade and get more credit that way, but if I'm just going to get denied or a high interest rate, I don't want to bother..

Short version: how long will it take me of having good credit before I'm established enough to get low interest rates?

[Alfer]

Part II:

I can probably get a loan for $1,000 at prosper paying around 24% interest. I could pay that off in 3 months easily. The only reason I would do this loan is for the positive information on my credit report vs just pulling from savings. Is the extra money spent on interest worth it?

[Broken Arrow]

24% interest is so high though....

Then again, this is a great thing for lenders.

24%?! good grief, do you at least get dinner and a movie with that? that's usually customary before someone does that to you!

[Ima saver]

I think that is way too high!! I can't believe you can't get a better rate than that.

Do you belong to a credit union? My credit union will do secured loans - based on what you have in savings - usually no set up fee. I did one once at 5%.

[markio26]

i would do a bank secured loan and i think this will up your score.. try not to create new debt unless you have to.

[Ima saver]

I think a bank secured loan would be the best too.

[Alfer]

Thanks for the info. I'll talk with my bank and see what the officer can come up with.