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Regular Contributor
BCF
Posts: 120
Registered: ‎05-27-2012
0

no installment on report

I got an auto loan less than 2years ago from a local credit union. The problem is they only report to EQ. So my EX and TU show not having an installment account as a negative factor on my scores.

 

I have enough money to payoff that loan, should I do that or let it be open to report payments?

 

What type of installment loan can I get to increase my score?

 

Wallet: AMEX Blue Cash Preferred 5k; BofA Visa CashRewards 5k; BofA 1-2-3 MasterCard 4.4k; Citi TY Premier 2.5k; AMEX HHonors 3.5k, Chase Marriott 5k, Barclays US Airways 2.5k, Kohl's 300
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: no installment on report

If you see something as a negative factor regarding the absence of an installment, then my guess would be that the scores you are looking at are FAKOs, and the advice is FAKO-related. If it didn't come from myFICO, then ignore it. Not having an installment isn't a bad thing. You can easily hit into the 800s without one (and many here have). If you have the chance to PIF the loan, then by all means to save interest.

Moderator
Revelate
Posts: 9,029
Registered: ‎12-30-2011
0

Re: no installment on report


llecs wrote:

If you see something as a negative factor regarding the absence of an installment, then my guess would be that the scores you are looking at are FAKOs, and the advice is FAKO-related. If it didn't come from myFICO, then ignore it. Not having an installment isn't a bad thing. You can easily hit into the 800s without one (and many here have). If you have the chance to PIF the loan, then by all means to save interest.


Yeah, but FICO is a time-dependant algorithm, and if you're looking at maximizing your FICO potential in the lowest time possible, having an installment loan on the record is almost always beneficial.

 

Pretty much any type will do, refinance the auto loan to a lender that reports to the bureaus, open a personal loan, secured or otherwise, from any lender that reports.  Get a mortgage even :smileywink:.  If you have any of these three you're probably fine from the mix of credit function, but keep in mind as illecs suggests it's not strictly necessary, and we're not talking a massive FICO swing.  Maybe 10 points or thereabouts I would guess, but in my estimation if it gets you over the hump on some score breakpoint, it might be useful.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Established Contributor
bettercreditguy1
Posts: 757
Registered: ‎02-11-2012
0

Re: no installment on report

I believe Illecs is on target. I apped, was approved for a new auto loan in March. At the end of June ( three months of payments), I had regained all of my lost Fico points and gained  about ten more on my score. Of course, ymmv, I did make all payments on time.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
0

Re: no installment on report


BCF wrote:

I got an auto loan less than 2years ago from a local credit union. The problem is they only report to EQ. So my EX and TU show not having an installment account as a negative factor on my scores.

 

I have enough money to payoff that loan, should I do that or let it be open to report payments?

 

What type of installment loan can I get to increase my score?

 


My advice is the same as always; as long as you don't use up all your savings pay off any debt as fast as possible. Being debt free should always be your #1 goal with consideration of a score a very distant second.

 

Closed accounts still count into your credit mix and although open, active accounts are given more weight IMO the small difference is not worth staying in debt.

Established Contributor
Lasardo
Posts: 745
Registered: ‎04-26-2012
0

Re: no installment on report

Suggest a CD saving account. Let me explain: A particular bank offers a Savings account (CD) that you pay .44% of 1k-5k. At the 2 year mark the funds are available to you and it lists as an installment loan. Example: I went with 2k. I pay $88 a month and it posted immediately to all 3 credit reports as "positive" (green) my score increased immediately 17 points but I haven't even started my payments yet! I can't wait to see what happens when I do. To reiterate: you pay .44% of 1k-5k and funds are available in 2 years. It shows positive as an installment loan on your report. I really like to ability to save while improving my credit. For information on the particular bank that does it I can pm it to you. You may want to also ask any local banks/credit unions. Good luck.
CS 728- 01/13 from 554-12/11
Goal: 800

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