I can get a 25k personal loan at just 2% apr. I don't need it, but I figure I could just put it in a 5% cd and profit from it. Would getting this loan lower my FICO score though?
2007-04-17 12:13:07 · 4 answers · asked by johnny c. 3 in Business & Finance ➔ Credit
it's for sure 2% Annual percentage rate....
and you're right bob, it is through USAA, used to be 3.5% and only 5k was personal and 20k was an auto loan, now it's 2% and all personal, pretty enticing...
does taking out a loan lower your credit score?
2007-04-17 12:29:43 · update #1
The IRS can assess a tax on you when you get a loan at a rate below the market rate. (Most people don't know this--it's called an imputed interest rate. It's considered either a gift, wages or dividend, depending your relationship to the one giving you the loan.)
The way it works is if the going risk for someone in your risk bracket (compare credit score) is 7%, and someone gives you a 2% loan, you get taxed on the other 5% as if it were income.
Scott above makes a good point (except for the fact that you called it "2% APR"--annual percentage rate). Make sure this is what they actually said.
EDIT............found an exception:
If below-market loans made don't exceed $10,000 per year AND the loans are not used to generate income
(Loans for service members are not mentioned as being exempt.)
2007-04-17 12:19:07 · answer #1 · answered by Anonymous · 3⤊ 1⤋
Personal Loan Usaa
2016-12-14 16:51:02 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Usaa Personal Loan
2016-10-08 11:25:06 · answer #3 · answered by elidia 4 · 0⤊ 0⤋
I'm confident that you must find every financial solution at: loanhome.info-
RE $25,000 personal loan @ 2%. Should I take it?
I can get a 25k personal loan at just 2% apr. I don't need it, but I figure I could just put it in a 5% cd and profit from it. Would getting this loan lower my FICO score though?
2014-09-05 15:23:17 · answer #4 · answered by Anonymous · 1⤊ 6⤋
Sounds cool
2016-07-28 23:44:12 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Double check and make sure that 2% isn't a MONTHLY percentage rate.
I doubt seriously that you're going to get a 2% APR anywhere. That's below the prime lending rate.
2007-04-17 12:18:02 · answer #6 · answered by Scotty Doesnt Know 7 · 0⤊ 2⤋
25000 at 2% sounds like a Cadet loan through USAA. I took it and used it to bankroll my OBC which is a good idea. And yes it is subprime. its a loan they use to attract new military officers to their bank.
2007-04-17 12:20:41 · answer #7 · answered by bob0111 1 · 2⤊ 1⤋
If you start paying back this loan on time, it should increase your FICO score.
2007-04-17 13:22:22 · answer #8 · answered by OC E90 4 · 0⤊ 0⤋
Thankyou all for your answers and opinions!
2016-08-23 23:57:21 · answer #9 · answered by ferne 4 · 0⤊ 0⤋