What is an installment account

[jn1980]

I have mortgage I'm currently paying on. I thought that this was an installment account. Am I wrong? Do I need to go get another account to be my installment account for my mix? What kinds of accounts are considered installment accounts for this purpose?

[ezdriver]

A mortgage is an installment. So is an auto loan. A credit card account is described as a revolving account. The former does not allow reuse of money paid to reduce the balance...the latter allows you to reuse money paid. 

[gdale6]

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@jn1980 wrote:

I have mortgage I'm currently paying on. I thought that this was an installment account. Am I wrong? Do I need to go get another account to be my installment account for my mix? What kinds of accounts are considered installment accounts for this purpose?

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Its an installment account (the best one you can possibly have). I would not get another instalment loan unless you actually need it for something. Installment accounts can be mortgages, auto loans, personal loans, boat & aircraft loans. Anything that has a fixed payment over time is typically an installment loan.

[Anonymous]

It is an installment account, but my understanding is that for scoring purposes FICO puts it in the class of 'real estate loan'. Fico likes to see several revolving accounts, one installment loan and one real estate loan. If you feel like you are 'leaving points on the table', and/or need a point boost for some reason, try taking a small secured loan for a few hundred at your local bank or CU and see if it helps. If you don't seem to be getting a boost from it, just pay it off and get your money back.