Installment Accounts good or bad

[polo1985]

Is installment accounts good or bad for rebuilding credit?

[bodybuilder510]

They can add a mix of credit. Most lenders prefer to see how well you handle revolving accounts. Get one if you need one, not for purpose of rebuilding. If you have no other installment loans including auto, then opening one will probably benefit you.

[polo1985]

I have one auto loan, 3 installment loans.... plus 2 credit cards... One secured and the other unsecured....
Thinking bout paying off all 3 installment loans ASAP

[bodybuilder510]

Yeah, I believe another installment loan isn't going to do much for score. Two credit cards is fine and keep utilization low. If you need to open a personal loan, go for it. You looking to increase scores. Age of credit cards will be the key and opening a new one if needed.

[polo1985]

Yes. Thanks also. Im trying to get towards at least 650 in the next few months (refinance my car).  Im bout to pay one credit card to $0 and the other towards $15... I only had the two cards roughly for 3mths... So should i apply for another card? If so i do not know which card i should apply that would grow with me especially since i know now that Cap One secured card doesnt

[bodybuilder510]

No...3 months is very young. Stick with those two and pay off before statement cuts. If you looking to refinance a car, you do not want any more inquiries. I would definitely wait until an year of age on both cards before refinance. You will get better terms with higher scores. Age and paying on time will take you to the top.

[bodybuilder510]

Pay all balances down and keep in good standing. Use cards every month but pay before statement cuts or let statement cut with low balances. 10% of credit limit. Patience and time is key with good scores.