Reply
New Member
ikari2_2000
Posts: 4
Registered: ‎01-02-2012
0

There is a lack of recent installment loan information on your credit report

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?

Mega Contributor
RobertEG
Posts: 18,422
Registered: ‎03-19-2007
0

Re: There is a lack of recent installment loan information on your credit report

That you have no open installment accounts, and thus is apparently saying that you dont have a mix of active revolving and installment credit.

New Member
ikari2_2000
Posts: 4
Registered: ‎01-02-2012
0

Re: There is a lack of recent installment loan information on your credit report

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?

Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: There is a lack of recent installment loan information on your credit report

[ Edited ]

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?

New Member
ikari2_2000
Posts: 4
Registered: ‎01-02-2012
0

Re: There is a lack of recent installment loan information on your credit report

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.

Community Leader
Senior Contributor
laz98
Posts: 4,336
Registered: ‎09-06-2008
0

Re: There is a lack of recent installment loan information on your credit report


ikari2_2000 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 :smileyvery-happy:

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
New Member
ikari2_2000
Posts: 4
Registered: ‎01-02-2012
0

Re: There is a lack of recent installment loan information on your credit report

So to increase my credit score, I have to get an installment loan even though I do not need to purchase anything?

Moderator
Revelate
Posts: 9,731
Registered: ‎12-30-2011
0

Re: There is a lack of recent installment loan information on your credit report

[ Edited ]

ikari2_2000 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.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge

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
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}