Title loan/secured = bad?

Doodlebug30 · ‎10-14-2020

I'm pretty sure I know the answer BUT, I have a secured "title loan" from 2012 on my EQ report. It's closed, paid and had 100% on time payments. So it's considered a "good" trade line. But, I thought I read that having that type of loan on your reports is a ding on fico? Which would make sense why my equifax is my lowest score. I can't find anything else that's diff between EQ and the other two to warrant a difference. Is this the case? Would it benefit me to ask EQ to remove it? Can I even do that? Is it hurting my score??

Thanks all

Anonymous · ‎10-14-2020

@Doodlebug30 wrote:
I'm pretty sure I know the answer BUT, I have a secured "title loan" from 2012 on my EQ report. It's closed, paid and had 100% on time payments. So it's considered a "good" trade line. But, I thought I read that having that type of loan on your reports is a ding on fico? Which would make sense why my equifax is my lowest score. I can't find anything else that's diff between EQ and the other two to warrant a difference. Is this the case? Would it benefit me to ask EQ to remove it? Can I even do that? Is it hurting my score??

Thanks all

My mother had a whole slew of title loans (almost exclusively, aside from 1 or 2 old, closed CCs) on her CRs and had scores in the mid 700s.

It is a positive tradeline that may be helping your age of accounts. I wouldn't want it removed. They generally stick around 10 years, so it only has a couple years left to report, anyway.

It looks like your scores are pretty close overall and in fact your TU score is lower.

I do not personally know if title loans are "bad" thing score-wise, so I will let someone else chime in.

Doodlebug30 · ‎10-14-2020

@Anonymous Thanks for your reply. I think maybe my EQ might be 689 right now (i think i should update my siggy!) But yes they are overall pretty close. I wasnt sure if the potential "ding" to my fico for the title loan would outweigh the positive age history...But i think your right, its prob better to keep it around for the little while it has left