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Valued Member
imandy
Posts: 49
Registered: ‎07-11-2012
0

Is installment loan important if I have mortgage?

So I still consider myself rebuilding I'm currently 720 with a new mortgage that started reporting in October. (BK 2005) I have not had any Installment loans (car loans etc) since 2010 as I just have had no need for one.

 

I am in the process of buing a new car again with cash but was wondering would there be any benefit to maybe financing $10k or some small amount to show that I have an installment loan, or beause I have a mortgage is it not really necessary to show installment debt for FICO scoring if you already have a mortgage?

 

I'm thinking it might actually hurt my scores showing more debt versus another positive TL.  FYI I have plenty of credit cards and decent AAoA so that's not an issue either.

 

Looking for thoughts...thanks!

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Is installment loan important if I have mortgage?


imandy wrote:

So I still consider myself rebuilding I'm currently 720 with a new mortgage that started reporting in October. (BK 2005) I have not had any Installment loans (car loans etc) since 2010 as I just have had no need for one.

 

I am in the process of buing a new car again with cash but was wondering would there be any benefit to maybe financing $10k or some small amount to show that I have an installment loan, or beause I have a mortgage is it not really necessary to show installment debt for FICO scoring if you already have a mortgage?

 

I'm thinking it might actually hurt my scores showing more debt versus another positive TL.  FYI I have plenty of credit cards and decent AAoA so that's not an issue either.

 

Looking for thoughts...thanks!


Installment loans are a peice.. if you don't have one, then yes, your score mix isn't ideal..

 

However, it's not a huge deal, if you have a mortgage, revolving ect you have plenty of positive factors.. but I could see an installment loan helping a little..

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
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Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Is installment loan important if I have mortgage?

Not worth paying the interest for a point or two.  


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