Future home mortgage and starting a loan right now?

[Anonymous]

So my wife and I are looking at getting a house, hopefully, next year.
I am going to upgrade my phone and have the option of getting it on contract or do a credit pull and setup a payment plan for the device.

I've never had a loan where I was required to pay monthly installments so I'm thinking it will help build my credit but I'm concerned starting a ongoing loan now will affect me come mortgage process time?

Any input would be appreciated

Thanks!

[Anonymous]

Getting the phone and setting up monthly payments is not going to help build your credit. The cell phone companies don't report that to the credit bureaus.

[Anonymous]

It won't be a cell phone bill. It will be an actual loan strictly for the phone. Apple has this program where you pay about $40 per month for the actual phone, they run a credit check and it's like getting a small loan. Completely separate from the bill you pay to the cell phone companies.

[dragontears]

Depends on if it reports, my cellphone provider has a similar plan but it doesn't report (even though it required a HP to qualify)

[DallasLoanGuy]

ask them if they report to the bureaus.

likely the rep wont know or will give the wrong answer though

[Sbrooks1]

I have this apple plan with Verizon hard pull in credit but does not report to the bureaus. All phone plans are going to this from the old way. If you don't pay it though it will go on your report as a baddie which seems harsh! They want help us build but will report if you default on your plan before the phone is paid for

[Revelate]

Best way to sort it out with a share secured loan from someone like Alliant if we're talking a year or more out.

Wouldn't go the consumer finance route even if Apple did report personally, I have enough awkward things on my file that I should never see a complaint about a CFA but I do on one of the mortgage trifecta score's reason codes.  No bueno.

Anyway it's payment history and can give a boost to your EX Risk Model v2 which is the Experian score on the standard tri-merge pull.  Was absolutely worth doing in my case (got me north of 720), and unless you're gold plated already I would suggest it'd be beneficial to anyone who doesn't have installment history on their report (or even anyone who doesn't have open installment history on FICO 8 and 9).

Method:
http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...