@Anonymous wrote:
@Anonymous wrote:
Currently I have 4 CC's. I took out a $15K auto loan in March of 15. I paid enough monthly to have it paid off in exactly 12 months. It currently reports closed paid as agreed. Do I need an active installment loan for better reporting or will this cover that? Granted, I have a crazy amount of derogs (15), so I won't see any true benefit of the scoring impact untill they start to drop (12/16 - 8 drop off). However, I opened an account with Alliant. I can do the secured installment loan with them. But, before I go and jump through all those hoops, I wanted to see if I needed to do that. Thoughts?
You should see some benefit, depending on how a new account will effect your AAoA.
Hi Norman - I hope you are well,
I don't think in the short term it will hurt. My AAoA, if I understand this correctly, will actually go up as each derog falls off. I did a consolidation loan in 2009. When I did this I closed 4 Credit cards that were in good status. All were opened between 1999 and 2002. Per the 10 year rule, I should continue to see these anchor me until 2019. I will have 16 accounts fall off. Thus making my AAoA go up until 2019. My goal in my rebuild process is to buy a home by April 2018. Seeing that you agree with me seeing benefit with the instalment, I'll do so.
Question: I did not include older accounts that were AU that are now terminated. My question is, do terminated AU accounts count towards AAoA? I have 1 from 1990 that was terminated in 2008. I also have 2 others that are similar to that one. If they do count, I am in better shape yet. But, to me it wouldn't make sense that they would count. But, what do I know...
As always, thanks for the time and effort you put forward on the boards.
