lilkjohnson wrote:
Can anyone tell me what kind of a point drop I might expect for adding a new installment loan? Any idea how long it will stay down?
I have two installment loans that will be paid off this summer at the same time. This will change my mixture of credit to revolving only. I fell like I should get a new installment loan soon to offset the loss in credit mixture as I need a new vehicle anyway. Is this sound thinking?
Adding a new installment loan solely for the purpose of improving one's mix usually backfires.
A new loan means a new account, reaging your file and hurting your FICO, and a new inquiry, which together usually do enough damage to more than offset whatever benefit you get from the mix.
How many inquiries do you have on each CR? How many total accounts, and what is their average age?
Message Edited by cheddar on
03-29-2008 10:46 PM
