Rant on FICO Scoring

CluelessJohn · ‎03-02-2015

"Lack of recent installment loan information

Your credit report shows no recent non-mortgage loans (such as auto or student loans) or sufficient recent information about your loans. Having a loan along with other types of credit demonstrates that you are able to manage a variety of credit types"

That is the stated reason my recent FICO score wasn't higher. The fact is my CR shows a 48 mo auto loan showing all payments on time and in full. OK, so last payment was 6/13. So what's the problem? In whose world is that a negative?

I'd feel better if they just took the points away and not give me such a bull reason. What a bunch of nonsense.

Chase Freedom Visa ($15K) Chase Freedom Flex ($15K) Chase Amazon Prime ($9K) USAA Limitless ($20K) AMEX BCE ($30K) CapOne QuickSilver ($15K) Citi DC ($20.5K) Citi Custom Cash ($5K) Discover It ($7.5K) BOA Cash Rewards ($5K) BOA MLB ($13K) USBank Cash+($10K) WF Active Cash ($8K)
FICO 8 ~800

gdale6 · ‎03-02-2015

@cluessJohn wrote:
"Lack of recent installment loan information
Your credit report shows no recent non-mortgage loans (such as auto or student loans) or sufficient recent information about your loans. Having a loan along with other types of credit demonstrates that you are able to manage a variety of credit types"

That is the stated reason my recent FICO score wasn't higher. The fact is my CR shows a 48 mo auto loan showing all payments on time and in full. OK, so last payment was 6/13. So what's the problem? In whose world is that a negative?

I'd feel better if they just took the points away and not give me such a bull reason. What a bunch of nonsense.

You lose some points for not having an open installment loan, it would tell you this the day after you pay off your final installment loan. I would not rush out and get an instalment loan just for Fico reasons.

CluelessJohn · ‎03-03-2015

I understand and I know we're not talking about alot of points, but it should at least be neutral if the entire non-mortgage installment is showing on the CR.. Stay tuned for the vent when my 15 year record of paying my (now paid off) mortgage on time becomes a negative.

Chase Freedom Visa ($15K) Chase Freedom Flex ($15K) Chase Amazon Prime ($9K) USAA Limitless ($20K) AMEX BCE ($30K) CapOne QuickSilver ($15K) Citi DC ($20.5K) Citi Custom Cash ($5K) Discover It ($7.5K) BOA Cash Rewards ($5K) BOA MLB ($13K) USBank Cash+($10K) WF Active Cash ($8K)
FICO 8 ~800

Gunnar419 · ‎03-03-2015

I completely agree that FICO's habit of punishing people the instant a mortgage, auto loan or other installment loan gets paid off is ridiculous. It would make more sense if these things continued to give us full benefit for 10 years like closed credit cards usually do.

Unless you're rebuilding or apping for a mortgage, though, and are therefore in a position to be hurt by the hit, its not that big a deal. You can easily have scores in the 800s with no installment loans. (My own FICOs are 814, 802 and 805 without an installment loan in sight.)