New installment loan effect - updated 8/2016

[axlm]

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@jamie123 wrote:

You are doing great!

The installment loan will help with your credit history on a manual review. People with good scores have been unable to get auto loans at prime rates because they lacked installment loan history.

Like other posters have mentioned and you have already agreed, once your personal cards are 2 years old you might consider dropping the AUs. The only credit a husband and wife should share are auto loans and mortgages. And you really should share auto loans and mortgages.

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Thanks for the kind words and tips, jamie!

Yep, dropping AU's it's next on my list. I'm done applying for CC's in the foreseable future, now looking at a new car lease (more likely buy) in 1.5 - 2 years down the road and planning for a home in about 3-5 years. Since I'm in no immediate hurry, was trying to avoid noise in my profile to try to get best installment utilization data points.

[axlm]

So far, my take is that the recommendation to get a secured installment loan is on point. Even IF time alone would have put me at 770 today, it made my file thicker and with more variety. Scores rebounded nicely in less than 6 months, despite new accounts and drop in AAoA -although I think this wasn't too significant because my already poor age. I also suspect there will be a significant jump once the loan utilization reaches lower points. Many thanks to all who contribute in those endless threads, especially @Revelate.

Will continue to update with new data whenever I can.

Edit: not sure about the last crazy dip in Discover's TU, all data seems normal in both bureaus. I guess March will show a correction.

[Anonymous]

Great thread!  Thanks for updating your data.  I just opened an Alliant secured in January.  I let it post in Feb with the full amount due.  I am anxiously awaiting my March info to post so I can see the effect of A) adding the loan - since I, too, am purely credit cards - B) paying the loan down to 9% util.

My 3B report is ready but I am waiting to make sure my Alliant is reporting the change in util before I pull it.  I will update when I do to see what (if any) impact it had on the mortgage scores.

[axlm]

Update August/2016: New account Citi Double Cash in March/2016, right after the previous update. Algo got rid of 2 AU accounts. Scores took a small hit after the new account, but 4 months later with inquiries down to 4 in each bureau, and the secured loan finally reporting below 9% util, I saw a nice jump to TU-778, EX-788 and EQBankcard-799. All of this with utilization well above 55% for my Citi (0% for 18 months, aggregate util still below 9%) and 4-5 of my 7 cards reporting a balance. So I guess just another datapoint of how well the secured loan technique works!

OP updated with new info.