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Mix of credit impacting FICO?

Valued Member

Mix of credit impacting FICO?

We know that the mix of different trade lines will impact our scores. To recap what is posted on this site elsewhere:
 
What’s In Your FICO® Score

FICO® Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your FICO® score.

Payment history: 35%, Amounts owed: 30%, Length of credit history: 15%, New credit: 10%, Types of credit used: 10%

These percentages are based on the importance of the five categories for the general population. For particular groups - for example, people who have not been using credit long - the importance of these categories may be somewhat different.

 

My question is if given the types of credit can impact your score, does the fact that the TLs are active or closed make a difference. In other words, if I pay off a car loan and it had a perfect history, will you loose "credit" for the account  if you have no other installment loans? Does it look back at previous history and say the installment requirement is satisfied? Or, does it say "whoops" one of the "positive" trade lines are missing and make an indeterminate deduction? 

Message 1 of 12
11 REPLIES
Senior Contributor

Re: Mix of credit impacting FICO?

I asked this question a while back and I think the consensus was that a paid off car loan doesn't count in the credit mix anymore.
Message 2 of 12
Valued Member

Re: Mix of credit impacting FICO?

Thanks for the reply!
 
Common sense tells me that, otherwise why see a score jump on a new installment line opening up. I was curious with all the other historical info coming into play, whether or not this did too. I am not going out and buying another car for the ole' FICO, but it is interesting nevertheless.
                                                                                                                                           Insert Smileys
Message 3 of 12
Moderator Emerita

Re: Mix of credit impacting FICO?

This is a hot topic lately. We need to find a member with only one, or only one remaining, open installment account that's almost paid off.

Any guinea pigs, er, volunteers out there? Smiley Very Happy

Because seriously, it's pretty annoying to think that in order to maximize scores, we'd need to go borrow something for no particular reason. One of those times to go with financial sense instead of scoring strategy!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 12
Valued Member

Re: Mix of credit impacting FICO?

Actually, I just paid mine off two weeks ago and awaiting the change now. I got the confirmation from the bank today...still waiting for the title. We shall see.
 
 
 
 
Message 5 of 12
Moderator Emerita

Re: Mix of credit impacting FICO?

Really? So you now have no open installment lines?

Well, let me be the first to thank you for taking a bullet for your fellow forum members! Smiley Very Happy Seriously, good luck with the scores, and please let us know what happens.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 6 of 12
Valued Member

Re: Mix of credit impacting FICO?

Ah, I am always happy to jump on a hand grenade for a good cause...my overwhelming curiosity!Insert Smileys
 
Message 7 of 12
Senior Contributor

Re: Mix of credit impacting FICO?

Little or no change is my WAG.
Message 8 of 12
Valued Member

Re: Mix of credit impacting FICO?

I will say 10+/-, based on absolutely nothing!
Message 9 of 12
New Contributor

Re: Mix of credit impacting FICO?

Anything that is reported on your credit report COUNTS
so that is a fallacy...
I bet if you miss a automobile payment you would see your score drop..
so everything counts.

Starting Score: EQ 730 TU 721
Current Score: EQ 730 TU 710
Goal Score: 800 to 850


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Message 10 of 12