INSTALLMENT ADVICE

[Anonymous]

In the process of rebuilding.I have 3 credit cards and one store card.Thus , I was advised to get an installment loan for a good mix of credit.I join Alliant and did the SSL .

There were some confusion and the loan got paid off after 2 months inadvertently.

Do I need to open a new installment loan or will the paid off loan suffice to satisfy the installment requirement for FICO scoring?

Please advise...

[Shogun]

---

@Anonymous wrote:

In the process of rebuilding.I have 3 credit cards and one store card.Thus , I was advised to get an installment loan for a good mix of credit.I join Alliant and did the SSL .

There were some confusion and the loan got paid off after 2 months inadvertently.

Do I need to open a new installment loan or will the paid off loan suffice to satisfy the installment requirement for FICO scoring?

Please advise...

---

Is there any reason why you would need a bump in your scores right now?  If not, then I wouldn't mess with it.  Just keep growing your credit cards.

[Anonymous]

---

@Anonymous wrote:

In the process of rebuilding.I have 3 credit cards and one store card.Thus , I was advised to get an installment loan for a good mix of credit.I join Alliant and did the SSL .

There were some confusion and the loan got paid off after 2 months inadvertently.

Do I need to open a new installment loan or will the paid off loan suffice to satisfy the installment requirement for FICO scoring?

Please advise...

---

For an installment loan to be counted in your credit mix it must be open.

[Shogun]

My best advice on this?  Don't pay interest or spend money for scores.  Your score will grow so that when you do need it, you will have it.  Save your money.  Best of luck to you.

[Anonymous]

---

@Shogun wrote:

My best advice on this?  Don't pay interest or spend money for scores.  Your score will grow so that when you do need it, you will have it.  Save your money.  Best of luck to you.

---

I disagree here 100% for someone who has low scores.  Here are my reasons:

1. My credit score going from 560->630 has already netted me a few hundred dollars a year in insurance discounts.  
2. My credit score going from 560->630 has switched me from low end secured cards with annual fees to rewards cards with no annual fee that will pay me back at least $1000 in free cash back this year.

If the Alliant SSL bumps you the 20 points you need for either of these things, it is cash in your pocket if you work that way.

The 20 point bump means little to someone with a prime FICO score but for someone on the edge of subprime, it can make a big difference and may help them save money or put more money in their pockets.