Reply
Valued Contributor
indiolatino61
Posts: 1,479
Registered: ‎11-10-2012
0

Would Installment Loan Help My FICO?

Hello all...I am stoked, since my Walmart TU FICO rose 68 points this month, from 708 to 776! Now, it says that my #1 factor affecting my score is lack of recent installment loan experience, such as a car loan. Do you all think I should take out a small personal loan from my bank (Chase) and would that end up raising my scores in the long run? I don't need a loan, so this would only be for FICO score purposes, so if you think it's not a good idea to just get a loan for this purpose, let me know. Thank you for your help.

 photo Logo-CreditCardCollection-DataInclusive_zps2390ab7f.jpg
Super Contributor
enharu
Posts: 7,002
Registered: ‎02-27-2013
0

Re: Would Installment Loan Help My FICO?

your score is already at 776. there's no need to raise it any higher.

you already qualify for the best rates and can easily get most of the cards out there. other factors such as income probably will play a bigger role in making any difference from that point onwards.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Moderator
09Lexie
Posts: 25,958
Registered: ‎09-13-2012
0

Re: Would Installment Loan Help My FICO?

IF you get a bump it might be 1-2 pts in all likely hood. Not worth the inq hit, AAOA and its not going to make an approval decision if your score is in the mid 700's.
Valued Contributor
indiolatino61
Posts: 1,479
Registered: ‎11-10-2012
0

Re: Would Installment Loan Help My FICO?


enharu wrote:

your score is already at 776. there's no need to raise it any higher.

you already qualify for the best rates and can easily get most of the cards out there. other factors such as income probably will play a bigger role in making any difference from that point onwards.

 


Yes...you are quite right. I guess when you're a member on these forums you never know when to stop...lol. Thanks for bringing me down to earth!

 photo Logo-CreditCardCollection-DataInclusive_zps2390ab7f.jpg
Valued Contributor
indiolatino61
Posts: 1,479
Registered: ‎11-10-2012
0

Re: Would Installment Loan Help My FICO?


09Lexie wrote:
IF you get a bump it might be 1-2 pts in all likely hood. Not worth the inq hit, AAOA and its not going to make an approval decision if your score is in the mid 700's.

Also good advise like enharu's. Like I told enharu, sometimes you just get obsessed with "the numbers." Thanks for your reply.

 photo Logo-CreditCardCollection-DataInclusive_zps2390ab7f.jpg
Moderator
09Lexie
Posts: 25,958
Registered: ‎09-13-2012
0

Re: Would Installment Loan Help My FICO?

Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: Would Installment Loan Help My FICO?

For anyone else who might read this - DON'T GET A LOAN YOU DON'T NEED! Save your money, but a nice gift for yourself, and sit on your nice 776 credit score. A car loan, mortgage, or other type of installment loan will come over time for the majority of people.

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Moderator
09Lexie
Posts: 25,958
Registered: ‎09-13-2012
0

Re: Would Installment Loan Help My FICO?

Thanks SnackTrader! You said it exactly how I wanted to...caps and all! 😉

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+
}