Because of the theorized formula. I would suggest to somebody with no loans to get two, one for one year and one for four. You can use the proceeds from the first to secure the second. The first loan hits it's sweet spot quickly and then pays off 6 months later as the second loan is getting in its sweet spot. You shouldn't experience a payoff drop with the one year as you will still have the four year. That is just my opinion although pure speculation.
06/26/2014 - Gardening until 7/1/15
Staggering the two one year loans introduces a new account very frequently. Maybe mend my earlier comment to start with the one and four and two years later add another four, continue until you buy a car or house.
I actually have 1 four year and 1 two year loan.
Alliant would only go 4 years on a $500 loan and SDFCU would only go 2 years on a $500 loan so I think I'm doing what you guys are doing even though I didn't plan it that way. 
@jamie123 wrote:I actually have 1 four year and 1 two year loan.
Alliant would only go 4 years on a $500 loan and SDFCU would only go 2 years on a $500 loan so I think I'm doing what you guys are doing even though I didn't plan it that way.
Well, we are all doing "similar" things but not the same. My guess is that one of us will be right on the money, but the other two will not be that way off either. The most important thing is that we all agree we are going in the right direction, and if we disagree as to which street gets us there faster, it's fine.
@Anonymous wrote:
@leegreen wrote:
Staggering the two one year loans introduces a new account very frequently. Maybe mend my earlier comment to start with the one and four and two years later add another four, continue until you buy a car or house.
Although there would be no HP, that "new account" point, you make, it's true. The only way around it would be for Amex to keep making AF cards that can "neutralize" it... But, doing it my way, it's an issue...
Your AAoA could be easily handled with CC's Amex or other aging cards. Because of the constant "thickening" of the credit file the new account dings would be less and less as time went on. Hopefully these would be a stop gap until the purchase of a house anyway where the credit mix improves anyways. 
@leegreen wrote:
Your AAoA could be easily handled with CC's Amex or other aging cards. Because of the constant "thickening" of the credit file the new account dings would be less and less as time went on. Hopefully these would be a stop gap until the purchase of a house anyway where the credit mix improves anyways.
A solid mortgage improves many things, no question. However, FICO points wise, the little secured loan could do better, although for a much shorter term.
Let's clarify for those who don't understand this friendly "dispute." One side, which is not me, believes that the secured loan maximizes you points starting at the 9th month, and they plan to over-extend that good effect by getting a 2, 3, 4 year loan.
I, on the other side, think that is an optimistic understanding of the data. I think the best effect of the loan starts at the 8th or 9th month, but not because it's the 8th month; but, because it's the ENDING THIRD of a ONE YEAR loan, and that is why the points just go up. So if you apply that to the two year loan, you would see the max points in about a year and a half, some of us would like it way sooner than that.
You guys are viewing data for the effects of a one year loan and attributing point results to a special month and not to the percentage of the loan that remains, that's a mistake, I THINK. 