cancel
Showing results for 
Search instead for 
Did you mean: 

Does mortgage or auto loan help increasing credit scores?

Valued Contributor

Does mortgage or auto loan help increasing credit scores?

If it does, then I don't need to keep a balance on any of my cards to increase my CS.
Message 1 of 6
5 REPLIES
Moderator Emerita

Re: Does mortgage or auto loan help increasing credit scores?

Having a mtg or auto loan does help but you also should have a healthy mix of cc's. letting at least 1 cc report a balance is deemed ideal.
Message 2 of 6
Frequent Contributor

Re: Does mortgage or auto loan help increasing credit scores?


09Lexie wrote:
Having a mtg or auto loan does help but you also should have a healthy mix of cc's. letting at least 1 cc report a balance is deemed ideal.

+1

Gardening since 03/25/2016. Discover FICO 705 (4/21/16).
Discover It 2000, Barclay Ring 7100, Capital One QS 7000, Amazon sc 6000, Chase AARP 2500, Barclay Rewards 500
Message 3 of 6
Highlighted
Valued Member

Re: Does mortgage or auto loan help increasing credit scores?

For me, my mortgage loan (Oct) basically had little impact on my score on EQ and TU, but my EX score tanked.  I cant definately say thats the reason since I have 0 balance on all my cards and last time I pulled that was actually listed as a negative only on EX but the amount the score decreased makes me think that the mortgage loan contributed to the drop.

 

From what I read on this forum, my score will increase once a good pattern of payment is reported on my mortgage loan.  Im going to try and leave a nominal balance <9% on one of my cards and see what that does.

WF Platinum (3K), CapOne Platinum (5K), Discover IT (1K)
Message 4 of 6
Senior Contributor

Re: Does mortgage or auto loan help increasing credit scores?


DigitalArk wrote:
If it does, then I don't need to keep a balance on any of my cards to increase my CS.

It's not an either-or thing.  Every factor matters.  Low utilization and a mix of credit will help your credit score -- among other things as well.

Message 5 of 6
Valued Contributor

Re: Does mortgage or auto loan help increasing credit scores?

Thank you all!
Message 6 of 6