Credit Card Center Advertiser Disclosure

Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0 Kudos

The thing about that score is that they ding you if you d...

The thing about that score is that they ding you if you dont have OPEN installment loans.  I didn't see adecrease on the FICO score if that helps.  Actually I went to the bank first.  The minimum they give is 10k for personal loans.  I have no desie to open a loan of that magnitude.  Otherwise they refer you to a finance company with much higher rates than I saw on that site.  I have LOTS of avail credit on my cars.  Just no open install ments.
I did the app and let them pull the Plus and immediately checked to make sure it was a soft (I still have a good disute open with EX)  I got the B rating but still making up my mind,  I'll take the lowest rate they have which was less than BOFA was offering on a personal line of credit.
New Visitor
Posts: 2
Registered: ‎04-17-2007
0 Kudos

Re: installment loans

Good morning!
I'm not sure what City you live in.  However, in Chicago, you can go to LaSalle Bank and take out a Dreams Begin loan that reports like an installment loan.  It truly helps your credit score.  It helped mine!
Valued Member
Posts: 34
Registered: ‎04-26-2007
0 Kudos

Re: The thing about that score is that they ding you if you d...

Old thread, but I have a suggestion. I've never taken a personal loan from a bank, so I'm not sure if it would work.
 I know you don't want a 10K loan. If you believe you could qualify, then as a last resort you could take the 10K in funds. As your first payment use 9K of the funds...leaving you with just a 1000.00 of principal + the interest accrued for the first month.  Or use some other combination.
If you have the discipline, pull from the remaining loan funds to make payments each month. All it would cost you is the interest accrued each month.
Of course watch out for a prepayment penalty and like I said....discipline not to spend any of the loan.
2012 - EQ 785

2010 - EQ 680
2007 - EQ 630
2006 - EQ 600
Moderator Emeritus
Posts: 2,050
Registered: ‎04-17-2007
0 Kudos

Re: The thing about that score is that they ding you if you d...

1.  FICO isn't really saying that your score is lower because you don't have an installment loan.  It's saying that it might be higher if you did.  There is a difference.
2.  I personally think it's senseless to take out a loan just because you think it *may* improve your credit score.
3.  Taking on new debt could be a negative factor in a potential lender's eyes, because you've increased your debt obligations.  They compare your salary to your monthly debt payments (this ratio is not part of your FICO score) and won't lend you more if they think you're overextended.
4.  I know says they report to the CRAs; does anyone have evidence that they do in fact report?  To all 3 CRAs?  With complete and correct info?  How do they handle disputed info?
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.