09-19-2012 06:23 PM
My auto loan company, up until yesterday, didnt report to Trans Union. Well I was just notified that the account is now being reported to Trans Union but my score didnt change at all! Its a 2 year old loan with no late payments. Shouldnt this have raised my score? My scores are as follows, all lender pulls: EX - 662 EQ - 619 TU - 591. All are reporting the exact same accounts. I thought for sure that my TU score was so much lower beacuse the other 2 reports had the auto loan. But no gain at all when the loan was added to TU....Any thoughts??
09-21-2012 12:32 PM
Multiple factors at play, so like all things in scoring, it depends.
First, once reported, the acct will effect your avg age of accounts. If you AAoA prior to reporting was higher than the AAoA of this acct, it would lower your AAOA.
Having timely payments adds to score primarily due to its increasing impact on AAoA. Lack of delinquencies is a matter of not doing harm rather than providing a direct score increase.
Second, its util is now being scored. Since it's an installment acct, very little impact, as installments are not weighted much under bal vs loan amt.
They dont represent % util of a revolving CL or LOC.
If you already had other installments, then addition of a new one will most likely not have much affect on improving your mix of credit....
09-22-2012 10:24 AM
Thanks for the info...This is the first installment loan reporting to Trans Union. The only other thing reporting is my Cap one credit card, which is about a year old. The auto loan is 2 years old, thats why i was surprised it didnt boost my score at all. I was added to my grandfathers discover card (opened in 1993, 8,000 limit with 1,000 balance.) that should report any day. Should i expect the same results with that or do you think that the revolving account will help more?
09-22-2012 02:18 PM
I would expect some boost, but again, it depends upon all the info in the AU account. With a solid age of account, low util, and no derogs, it will be positive.
However, if its util creeps up or the account has a derog, it could hurt. You need to watch that AU account.
FICO likes to see muliple revolving, as it places high weight on effective util of discretionary, revolving credit, and likes to see plural revolving. The addition of the revolving account along with the installment should produce an improvement in credit mix.
The other overall factor is that you will now have three TLs reporting, which will move you into a "thick" credit file, putting you into an improved scoring category.
That's a "bucketing" criteria, apart from individual category scoring.
Lotsa stuff going on simultaneously, so hard to say yes or no.......
09-22-2012 05:58 PM
Credit is like a fine wine. Let it age a bit. It'll start rising.