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During the last couple of months I have added 5 inquiries due to shopping for an RV. My EQ score dropped 16 points. The lender reported the RV on my report and my score went up 20 points. I expected my score to lower a few more points once the RV showed up on my credit report because it added an additional 18k in debt. The only explanation that I can come up with is my age of credit went up from 5 years to 6 years at the same time the new debt reported. My AAoA went from 2 years 5 months to 2 years 3 months.
My questions are: Was it because my account age went from 5 years to 6 years the reason for my score increasing? The additional 5 inquiries were lumped in a short amount of time and were all for the RV financing. Would those 5 inquiries be looked at as 1 inquiry?
I have no baddies and my installment debt went from 30k to 48k which consist of a pickup and RV loan. I have kept my revolving at 1%. I don't have a mortgage as I rent.
My credit pulls are always from My Fico.
Any input would be appreciated.
Installment loans are treated differently than revolving accounts for purposes of utilization.
Sometimes an installment loan helps you in the "mix of credit types" category.
Adding a loan of any type can raise your DTI, which is a separate issue from scoring.
@Slab wrote:During the last couple of months I have added 5 inquiries due to shopping for an RV. My EQ score dropped 16 points. The lender reported the RV on my report and my score went up 20 points. I expected my score to lower a few more points once the RV showed up on my credit report because it added an additional 18k in debt. The only explanation that I can come up with is my age of credit went up from 5 years to 6 years at the same time the new debt reported. My AAoA went from 2 years 5 months to 2 years 3 months.
My questions are: Was it because my account age went from 5 years to 6 years the reason for my score increasing? The additional 5 inquiries were lumped in a short amount of time and were all for the RV financing. Would those 5 inquiries be looked at as 1 inquiry?
I have no baddies and my installment debt went from 30k to 48k which consist of a pickup and RV loan. I have kept my revolving at 1%. I don't have a mortgage as I rent.
My credit pulls are always from My Fico.
Any input would be appreciated.
Its possible you gained a few points from your oldest account moving to 6 years, all the inquiries for the RV in a 2 week period count as 1 for FICO. AAoA usually doesnt change much until you move into 4 years from the 2-3 year level. You most likely also gained points for individual accounts getting older and good payment history on your instalment loans. Congrats to your success in increasing your score
Thanks a lot for the responses.