Valued Contributor
Posts: 2,280
Registered: ‎07-23-2012
Installment Loan Factors into fico!

as requested by revelate. im coming in here to gain knowledge of how installment effects my score. 

 

at the moment I have 9cc and 1 installment loan(lease on my car) 

 

Best Buy Opened October '10

Macy's  December '10

Kohl's Jan '12

CC Jul'12
Chase Freedom Jul'12

AE Jul'12
Walmart Jul'12

Zync August 12'

CC August 12'

Lease. Obtained August 30th 2012 but I think only reported from sep 36 month loan.

 

soo all together my aaoa would be? (as of today counting oct.) 

24+22+10+4+4+4+4+3+3+2 (80)/10? is that correct. 

so aaoa is 8 months? and subsequently go up every month by 1. (obviously) 

 

 

so how much does the installment loan effect my score? I read the util is almost microscopic its the history and payments that matter. 

Current: Discover Fico 709 3/15 Walmart Fico 743 4/15

Inquiries (24 Months): EQ 6 TU 1 EX 6 | Most Recent: 4/09/2015
Over 12 Months:9


2015 Goals:
Lower Utility
Earn Cash Back

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$6,400
Citi DC $10,000
Citizens Mastercard$7,000
Moderator
Posts: 13,758
Registered: ‎04-15-2011
Re: Installment Loan Factors into fico!

I would say that first it affects it in the obvious way, positive TL, Mix of Accounts, AAoA.  But util shouldn't come into question due to the fact that it's not variable.  You wouldn't be adding to like a revolving account.



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!