Mix of Credit?

[2ndTimeAround2012]

Hi,

What "mix of credit" do I need to more effectively raise my scores?

Right now I only have credit cards.

What other type of credit do I need and which bank/lenders are easy to get approved for with not so good credit?

Thanks!

[rckstrscott]

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@2ndTimeAround2012 wrote:

Hi,

What "mix of credit" do I need to more effectively raise my scores?

Right now I only have credit cards.

What other type of credit do I need and which bank/lenders are easy to get approved for with not so good credit?

Thanks!

---

Mix of credit only impacts 10 percent of your overall Fico score... since you have 'not so good' credit, I think trying to get into something like an installment loan or a car note right now might not be the best move.. this opinion is in no way reflective of your situation, that is just my opinion..

Focus on keeping the current cards on time, let them age a little, keep the util down and when the time is right, do what needs to be done..

I just think the trend I have seen of people running out to get mix of credit is misguided, specifically given the less weight mix of credit has than what people assume it has.. sure, it will help your score... but enough to take the initial score ding when opening the account (and inquiry), then the payments that need to be made to whatever tradeline you get (car, personal loan ect) just for 20 credit score points?!?

Most of us are on this board because of past failings with credit, payments, cars, what have you... I only have credit cards and my score is FICO score 744 right now.. had I gotten a car note 2 years ago when I started, it might have been repoed and my score would be tanked...  my situation is unique to me, but the message is universal..

-scott

[FrugalRican]

I'd have to agree.

It seems like you have quite a few accounts. I'm just wondering if they are all relatively "new" because of the low CLs.

You could benefit from letting these age and getting potential CL increases in the future, all on their own.

Right now, I COULD get a car loan to "improve my score" but I can't really afford to pay an additional monthly payment plus insurance... so I'm just being patient until the right time comes to do it. The quick fix can sometimes become part of the problem.

[LIGHTNIN]

I agree what has been said so far. The fastest way to increase your score, it to pay down balances on CC's.

What kind of balances, do you have on your CC's? Do you have any baddies on your CR?

[Anonymous]

Have you ever had any installment loans?  I agree with the above posters never take on a new debt load or open installment (such as a car loan etc) just to boost your fico score that's crazy.  However there is another way and you might have good reason.  If you open an account with a CU you can get what is called a secured loan.  It's when you put your own money down for the amount you want to "borrow".  The only thing you end up paying for is the interest which will be very low rate anyway.  Think of it as a savings with negative interest ofcours.  If you put it into a CD you won't be able to touch it early without penalty but if you put it into a savings you'll have access to it as soon as you "pay" your monthly fee.

This may give you a fico boost i can't say how large but there will be some if you have no other open installments plus some creditors will deny you based on the fact that you don't have any recent installment activity.  They wanna see how you perform with those types of debt as well. So good luck.

[namvet]

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@2ndTimeAround2012 wrote:

Hi,

What "mix of credit" do I need to more effectively raise my scores?

Right now I only have credit cards.

What other type of credit do I need and which bank/lenders are easy to get approved for with not so good credit?

Thanks!

---

Time will boost your score.  Just take care of what you have now and review the results each 6 months.  Best if you don't carry a balance on all of your cards at the same time.  The ones that you do carry a balance on just keep the util down to acceptable levels (30% or less).  Apply for new credit only when you need it and apply only once each 6 month period.

[2ndTimeAround2012]

Thanks Scott!

I had no idea it was only 10%. You're right, I should just focus on my credit cards.

Thanks again!

[llecs]

There are many examples in here of posters hitting into the 800s with no loans whatsoever.

[2ndTimeAround2012]

Lightnin,

I'm about 40% on about 3 and the rest I try to keep under 15%.

Yeah, I'm working on paying them off completely. Hopefully by next month I will be at 5% on all the cards

I do have a couple collection accounts back from 08/09. Trying to figure out the best way to get them off my cc report :/

Thanks!

[2ndTimeAround2012]

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@Anonymous wrote:

Have you ever had any installment loans?  I agree with the above posters never take on a new debt load or open installment (such as a car loan etc) just to boost your fico score that's crazy.  However there is another way and you might have good reason.  If you open an account with a CU you can get what is called a secured loan.  It's when you put your own money down for the amount you want to "borrow".  The only thing you end up paying for is the interest which will be very low rate anyway.  Think of it as a savings with negative interest ofcours.  If you put it into a CD you won't be able to touch it early without penalty but if you put it into a savings you'll have access to it as soon as you "pay" your monthly fee.

This may give you a fico boost i can't say how large but there will be some if you have no other open installments plus some creditors will deny you based on the fact that you don't have any recent installment activity.  They wanna see how you perform with those types of debt as well. So good luck.

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Yeah. I've had two and both are on my cc report as charge off/collection :/

One was a personal loan and the other from a furniture store.

My reasoning was that if I can get a new installment loan and show potential creditors that I can know manage the payments that I will be given a chance.

I have been looking into mobile homes ranging from 15-45k but before I can be approved I wanted to show them that I was current on an actual installment loan and not just credit cards. I don't know just assuming...

Any advice?

Thanks!