Is installment loan important if I have mortgage?

imandy · ‎07-11-2012

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!

rckstrscott · ‎04-25-2011

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): 05/12: TU: 722 | EQ: 712 | EX: 686
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
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession
Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX

Shogun · ‎04-15-2011

Not worth paying the interest for a point or two.

Starting Score: 504

Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Rebuilding Your Credit

Is installment loan important if I have mortgage?

Re: Is installment loan important if I have mortgage?

Re: Is installment loan important if I have mortgage?