No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I've been rebuilding since the beginning of the year really. Scores have gone from 550's to low 600's in that time...even while having an IRS lien placed in the middle of it all, the good I've done elswhere (removals, goodwills, on time payments) have outweighed it and gotten the scores somewhat better.
In February, through Cap One, I opened a car installement loan for a new car and have been paying it on time each month for 6 months now. My question is, is this loan helping me yet or does it need to age to about 2 years before it starts to help my FICO scores? I've seen it written where the ratio of the balance tot he original loan is hurting me...and also it has impacted the AAoA.
Do installment loans help after even just a handful of of time payments or is it still weighing down my score to some degree? Any ideas?
@nycfico wrote:I've been rebuilding since the beginning of the year really. Scores have gone from 550's to low 600's in that time...even while having an IRS lien placed in the middle of it all, the good I've done elswhere (removals, goodwills, on time payments) have outweighed it and gotten the scores somewhat better.
In February, through Cap One, I opened a car installement loan for a new car and have been paying it on time each month for 6 months now. My question is, is this loan helping me yet or does it need to age to about 2 years before it starts to help my FICO scores? I've seen it written where the ratio of the balance tot he original loan is hurting me...and also it has impacted the AAoA.
Do installment loans help after even just a handful of of time payments or is it still weighing down my score to some degree? Any ideas?
The installment loan has certainly helped you and will continue to throughout the loan what can have a negative effect which is
represented in the purple area of the of what goes into fico scoring
See chart below amount owed (30%) and length of credit history (15%) play an important part in scores
As the account ages and the loan amount comes down the more your scores will benefit
New credit (10%) usually weighs heavy for the first 6 months YMMV with a thin vs thick file