Wow!

[hautemama]

I was starting to get very doubtful of any score increases, as I have not had much success at all with my gw my loans, or deleting my collections.  I have however, started to pay down my cc's and keep my payments on time sometimes paying twice a month.  Since I've started, I've obtained two new tradelines of about 1K (Hooters and B of A Platinum Plus) and purchased a new vehicle for a new auto installment loan of ~27K.  An old auto installment loan of ~11K is being paid off, but not reflected in my CR as of yet.  I just received a score watch alert that my score has increased 26 points!!!  Is this accurate??? Wow I am so ecstatic.

It did not trigger any other alerts, however.. i.e. changes to my CR..  And, my question is this.. Will my score decrease?  Nordstrom just did an inquiry.. How would I know whether it is a hard or soft one?  I am afraid my score will decrease because of the new B of A tradeline, new auto loan, and inquiry fm nordstroms...

PS- A factor on my CR that says is reflecting negatively is that my installment loan balances are greater than my original loan amount (because of interest, etc..) I thought installment loans did not count against credit score??

Please answer questions if you can, I am starting to get very excited again about this whole FICO thing!!

[RobertEG]

Installmen loans DO count iin the %util category, and also infuence the separate credit mix category.  Revolving credit util counts much more than installment, but both count.  Revolving util counts at least three times as much as install util.  If you are maxed on any TL, including an install loan, it shows that you have a higher risk for new credit, which is what your FICO score is all about.

Also be aware that the hard pull for each of your new TLs may not yet have posted, and each will hit you for 5-10 pts immediately after they post.  With all of your new credit, the best FICO strategy for the next year would be to refrain from applying for any new credit.  The hard inq hits will go away after a year.  Time heals.  Your recent bump appears to a result of your total CL increase, resulting in a decreased %util.  I would expect a drop in the next few months, after all info is updated on your report, but only temporary.

Message Edited by RobertEG on 02-03-2008 08:47 PM

[haulingthescoreup]

Installment util is counted, but it is regarded separately from revolving credit. I have had essentially no score changes resulting from changing installment util. But relatively small changes in revolving util can dramatically change scores.

I think this is what RobertEG said; I'm just saying this in a different way.