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I paid off my car 18 months ago, I have a student loan with ~$9,000 left to pay(direct deposit from bank acct), one credit card that I never use(had for 10 years), and another credit card with an intro offer of 0% APR(for 12 months) that I plan to zero out and cancel in February. I recently applied for another credit card with an intro offer of 0% APR(for 18 months) since the other is up in February. When I applied for the new card, under the Key factors that adversely affected your credit score it listed "There is a lack of recent installment loan information on your credit report". Based of what I've shared, what does "There is a lack of recent installment loan information on your credit report" refer to?
That you have no open installment accounts, and thus is apparently saying that you dont have a mix of active revolving and installment credit.
Student loans do not count?
So to increase my credit score, I have to get an installment loan even though I do not need to purchase anything?
Did this statement accompany any mention to FICO or did the lender provide a FICO score? Or was it a blanket comment without any mention to a credit score?
This information was on the last page(4th sheet) of my Citi Bank Credit Card packet. I did qualify for the card.
I believe the lender(Citi), since it was their packet, provided the FICO score. I can double check when I am home. The score they provided was 707. My goal this year is to raise it to 760.
@Anonymous wrote:Student loans do not count?
So to increase my credit score, I have to get an installment loan even though I do not need to purchase anything?
oh, they count! i consistently get the message that the remaining balance on my installment loans is too high
So to increase my credit score, I have to get an installment loan even though I do not need to purchase anything?
@Anonymous wrote:So to increase my credit score, I have to get an installment loan even though I do not need to purchase anything?
From a pure FICO scoring perspective, if you don't own a house with a reporting mortgage, probably. The system isn't setup in our favor on some things (or, debatedly, most things for that matter).
Like anything, YMMV. You did get approved for a respectable card, I wouldn't worry about it overly much as you're already in prime territory but I agree 760 is better than <760.