@Jmbeebe0722 wrote:
I am 20 years old with a 720 credit score. I have a truck loan in my name through my credit union, and about 5 credit cards with no balance and large credit limits.
I recently refinanced my truck through my credit union at lower rate, and solely in my name with no co-signer. So my old loan was "paid off" but my credit advice is that I don't have enough installment loans. I am getting ready to buy a utility trailer and was approved by my credit union for a signature personal loan. I planned on paying cash, but would it be good on my young credit to take the personal loan and pay on it for six months and then pay it off?
Just curious if it would be worth while and benefital to my credit to take the personal loan, and quickly pay it off to show a paid installment loan.
If you refinanced, doesn't that mean that (1) you have a paid closed installment loan, and (2) you have another open installment loan?
If so, I don't think I'd get another installment loan just to help your credit further.
For purposes of mortgage qualification and building scores, I believe revolving lines (CC) are more important than installment, perhaps in part because it shows greater financial maturity to be able to handle unsecured loans.
Sometimes mortgage lenders look for things like three revolving lines open as a qualification for a mortgage.
