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Small PL for Credit Mix

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Firehorse
Frequent Contributor

Small PL for Credit Mix

Hi all!

 

I'm at the point now where I'm looking at my credit mix. I want to add a small PL, leave it in a special CU account, and just let them withdraw payments from it. I don't need the loan itself. Just a TL with the CRAs reporting as an installment.

 

My question is, Is there a significant dip in your scores when an installment loan is first added? If so, how long on average before you regain what was lost?

 

I'm thinking, I might app for my final CC accounts first, and then take out the PL.

 

Thanks! Smiley Happy

Start MyFico: 01/04/2014: TU 572, EX 599, EQ 593, CK: 593, CKV: 596, CS: 626 Garden since 01/09/2015
Current MyFico 10/23/2015: TU 740, EX 784, EQ 739, CK/TU: 768, CK/EX: 782, CS: 785 Q: 702 1.5% UTIL & 6.9 yrs. AAoA, 1 PAID FTB Lien 8/2008

Message 1 of 13
12 REPLIES 12
myjourney
Super Contributor

Re: Small PL for Credit Mix

Yes you will see a hit due to it looking like you owe XXX amount of dollars and the hit to AAoA

However the plus to credit mix should help over time and also as the balance owed comes down scores go up.

 

Having installment loans is good for Fico 08 before this model you could achieve 800"s without but 08 seems to ding you for not having some type of installmentSmiley Sad

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 13
Firehorse
Frequent Contributor

Re: Small PL for Credit Mix

I'm just taking $500 for a PL.

 

I just got a CC with a 5k CL, an Amex BD to 1989, taking my AAoA to 2.6yrs with this loan & a CLI from $250 to $4,450.

 

Might all just balance out okay.

Start MyFico: 01/04/2014: TU 572, EX 599, EQ 593, CK: 593, CKV: 596, CS: 626 Garden since 01/09/2015
Current MyFico 10/23/2015: TU 740, EX 784, EQ 739, CK/TU: 768, CK/EX: 782, CS: 785 Q: 702 1.5% UTIL & 6.9 yrs. AAoA, 1 PAID FTB Lien 8/2008

Message 3 of 13
myjourney
Super Contributor

Re: Small PL for Credit Mix


@Firehorse wrote:

I'm just taking $500 for a PL.

 

I just got a CC with a 5k CL, an Amex BD to 1989, taking my AAoA to 2.6yrs with this loan & a CLI from $250 to $4,450.

 

Might all just balance out okay.


Wait about a month just to see what the backdating does to your scores this may just give you one heck of a boost 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 4 of 13
Firehorse
Frequent Contributor

Re: Small PL for Credit Mix


@myjourney wrote:

@Firehorse wrote:

I'm just taking $500 for a PL.

 

I just got a CC with a 5k CL, an Amex BD to 1989, taking my AAoA to 2.6yrs with this loan & a CLI from $250 to $4,450.

 

Might all just balance out okay.


Wait about a month just to see what the backdating does to your scores this may just give you one heck of a boost 


I thought about that too. It's kinda in process now. It's from my CU who just gave me the 5k card. No 2nd HP for the loan.  Also, I'm not sure but doesn't Amex post on the 2nd statement?

 

Think I should tell them to wait and just take a new HP next month? It's not final yet.

Start MyFico: 01/04/2014: TU 572, EX 599, EQ 593, CK: 593, CKV: 596, CS: 626 Garden since 01/09/2015
Current MyFico 10/23/2015: TU 740, EX 784, EQ 739, CK/TU: 768, CK/EX: 782, CS: 785 Q: 702 1.5% UTIL & 6.9 yrs. AAoA, 1 PAID FTB Lien 8/2008

Message 5 of 13
Firehorse
Frequent Contributor

Re: Small PL for Credit Mix

I guess it would actually be two months if Amex posts later.

Start MyFico: 01/04/2014: TU 572, EX 599, EQ 593, CK: 593, CKV: 596, CS: 626 Garden since 01/09/2015
Current MyFico 10/23/2015: TU 740, EX 784, EQ 739, CK/TU: 768, CK/EX: 782, CS: 785 Q: 702 1.5% UTIL & 6.9 yrs. AAoA, 1 PAID FTB Lien 8/2008

Message 6 of 13
myjourney
Super Contributor

Re: Small PL for Credit Mix


@Firehorse wrote:

@myjourney wrote:

@Firehorse wrote:

I'm just taking $500 for a PL.

 

I just got a CC with a 5k CL, an Amex BD to 1989, taking my AAoA to 2.6yrs with this loan & a CLI from $250 to $4,450.

 

Might all just balance out okay.


Wait about a month just to see what the backdating does to your scores this may just give you one heck of a boost 


I thought about that too. It's kinda in process now. It's from my CU who just gave me the 5k card. No 2nd HP for the loan.  Also, I'm not sure but doesn't Amex post on the 2nd statement?

 

Think I should tell them to wait and just take a new HP next month? It's not final yet.


Sometimes Amex post the first but as always YMMV Lol

I was lucky and both of mine posted on first statement cut 

If its already in progress then proceed no use in wasting another HP later for what you can do now with the same pull

Good luck I'll be pulling for you

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 7 of 13
Firehorse
Frequent Contributor

Re: Small PL for Credit Mix


@myjourney wrote:

@Firehorse wrote:

@myjourney wrote:

@Firehorse wrote:

I'm just taking $500 for a PL.

 

I just got a CC with a 5k CL, an Amex BD to 1989, taking my AAoA to 2.6yrs with this loan & a CLI from $250 to $4,450.

 

Might all just balance out okay.


Wait about a month just to see what the backdating does to your scores this may just give you one heck of a boost 


I thought about that too. It's kinda in process now. It's from my CU who just gave me the 5k card. No 2nd HP for the loan.  Also, I'm not sure but doesn't Amex post on the 2nd statement?

 

Think I should tell them to wait and just take a new HP next month? It's not final yet.


Sometimes Amex post the first but as always YMMV Lol

I was lucky and both of mine posted on first statement cut 

If its already in progress then proceed no use in wasting another HP later for what you can do now with the same pull

Good luck I'll be pulling for you


Yeah, the one Amex is gonna take me from 8 mos. to 2.6 years! I calculated each new one will bump me up 1.5 yrs on AAoA.

Amex is gonna be sick of me soon, "too many Amex cards." Smiley Wink

Start MyFico: 01/04/2014: TU 572, EX 599, EQ 593, CK: 593, CKV: 596, CS: 626 Garden since 01/09/2015
Current MyFico 10/23/2015: TU 740, EX 784, EQ 739, CK/TU: 768, CK/EX: 782, CS: 785 Q: 702 1.5% UTIL & 6.9 yrs. AAoA, 1 PAID FTB Lien 8/2008

Message 8 of 13
Firehorse
Frequent Contributor

Re: Small PL for Credit Mix

I haven't heard back from the loan agent. She was supposed to call me back yesterday. Rather than call and ask about it, I think I'm just gonna pass on the loan if she doesn't reconnect with me. I'd rather take an AAoA hit for one more card than a loan for AAoA and balance.

 

I don't really need a loan and I'm not sure if it's something I should do anyway. 

 

Any thoughts?

Start MyFico: 01/04/2014: TU 572, EX 599, EQ 593, CK: 593, CKV: 596, CS: 626 Garden since 01/09/2015
Current MyFico 10/23/2015: TU 740, EX 784, EQ 739, CK/TU: 768, CK/EX: 782, CS: 785 Q: 702 1.5% UTIL & 6.9 yrs. AAoA, 1 PAID FTB Lien 8/2008

Message 9 of 13
myjourney
Super Contributor

Re: Small PL for Credit Mix


@Firehorse wrote:

I haven't heard back from the loan agent. She was supposed to call me back yesterday. Rather than call and ask about it, I think I'm just gonna pass on the loan if she doesn't reconnect with me. I'd rather take an AAoA hit for one more card than a loan for AAoA and balance.

 

I don't really need a loan and I'm not sure if it's something I should do anyway. 

 

Any thoughts?


UW can be slow to process loans sometimes hang in there and don't lose hope yet......

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 10 of 13
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