What should I do regarding installment loans for FICO?

[Anonymous]

Hello all, trying to build up my credit.

When I check my monthly Fico scores from Amex and Discover, they both list "lack of recent installment loans" as a negative. I have never needed to take out a loan to date. My question is, can someone explain to me or point me to a previous forum that clearly explains how to go about solving this problem (is it called the "SSL technique" that I frequently see people write?) Given that managing a variety of credit types is only 10% of the score, is it worth taking out a loan to get those extra few points? 

If it helps, my credit file is thin, 0-9% utilization, no delinquencies, 100% on-time, etc.

[Anonymous]

We have a solution for that

[Anonymous]

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@Anonymous wrote:

We have a solution for that

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Do this and you're golden.

Unless you are already well into 800s across 3 CBs (which I'd hazard a guess that you are not if you don't have any installment loan), this should give you far from just "extra few points"

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

We have a solution for that

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Do this and you're golden.

Unless you are already well into 800s across 3 CBs (which I'd hazard a guess that you are not if you don't have any installment loan), this should give you far from just "extra few points"

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30 points - give or take your individual mileage, which of course can and will vary  

[Anonymous]

OP, what do your current FICO 08 scores look like?

As stated above, typically around 30 points is what can be realized from taking on a SSL loan if you have no current open installment loans so that will give you an idea of what your score could potentially increase to, ballpark anyway.  From my experience, the thinner your credit profile in general the more volatile it is to changes.  For this reason you could possibly see a few more points than would someone with a very thick file that's employing the same SSL technique.

[Anonymous]

Thanks for all the help, especially the link to the guide.

Current FICO scores are 706 TU, 696 EX, and 685 EQ. I'm getting dinged based on AAoA (this will be fine over time) and lack of installment loans, so I think I will take all of your advice and do the technique. Don't see much downside, and it should surely raise my score (and it sounds like by more than I thought it would).

[Anonymous]

Definitely.  You'll be in the low-mid 700's across the board for sure, bordering on that "excellent" cusp.