12-05-2012 01:24 PM - edited 12-05-2012 01:25 PM
This question is for all credit gurus out there.
The title says it all. Since "type of credit" is one of the weighing factors in FICO scoring model, should I take out a small personal loan (say $1000 for 1 year) to raise my FICO score? What will be it's impact on my FICO score with the process of time?
My CU offers a 1 year secured CD for $1000 at very low interest rate.
Thanks in advance!
By mistake, I posted this thread twice. IS THERE ANY WAY TO DELETE A THREAD?
12-05-2012 02:50 PM
What other installment loans are in your portfolio?
Possilble improvement in mix of credit (10% weighted category).
What is your currrent avg age of accts, and how many accts make up that average?
Definate decrease in AAoA, amount denpendent on current AAoA and tot no. of accts.
New inquiry and new acct will affect new credit category for one year.
Not a huge gain, if any.....
12-05-2012 02:59 PM
Started building credit 10 months ago.
4 credit cards, all during this time. 6 inquiries. No installment loan currently. I keep my utilization under 5%. My current score is 695. I'm starting to believe my score would increase very slowly since I only have CCs & it would take me a lot of time to reach 750+ without a mix of credit.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO