Regular Contributor
cowboyguy
Posts: 172
Registered: ‎07-26-2012
Question for Credit Gurus out there
[ Edited ]

‎12-05-2012 01:24 PM - edited ‎12-05-2012 01:25 PM

This question is for all credit gurus out there.

 

The title says it all. Since "type of credit" is one of the weighing factors in FICO scoring model, should I take out a small personal loan (say $1000 for 1 year) to raise my FICO score? What will be it's impact on my FICO score with the process of time?

 

My CU offers a 1 year secured CD for $1000 at very low interest rate.

 

Thanks in advance!

 

By mistake, I posted this thread twice. IS THERE ANY WAY TO DELETE A THREAD?

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Mega Contributor
RobertEG
Posts: 14,723
Registered: ‎03-19-2007
Re: Question for Credit Gurus out there

‎12-05-2012 02:50 PM

What other installment loans are in your portfolio?

Possilble improvement in mix of credit (10% weighted category).

 

What is your currrent avg age of accts, and how many accts make up that average?

Definate decrease in AAoA, amount denpendent on current AAoA and tot no. of accts.

 

New inquiry and new acct will affect new credit category for one year.

 

Not a huge gain, if any.....

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Established Member
hussain99
Posts: 30
Registered: ‎11-20-2012
Re: Question for Credit Gurus out there
[ Edited ]

‎12-05-2012 02:58 PM - edited ‎12-05-2012 02:58 PM

I noticed from your other posts you are pretty new to credit. I think it won't help much

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Regular Contributor
cowboyguy
Posts: 172
Registered: ‎07-26-2012
Re: Question for Credit Gurus out there

‎12-05-2012 02:59 PM

Started building credit 10 months ago.

 

4 credit cards, all during this time. 6 inquiries. No installment loan currently. I keep my utilization under 5%. My current score is 695. I'm starting to believe my score would increase very slowly since I only have CCs & it would take me a lot of time to reach 750+ without a mix of credit.

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Moderator
Moderator
llecs
Posts: 31,968
Registered: ‎08-04-2007
Re: Question for Credit Gurus out there

‎12-05-2012 07:36 PM

Thread is locked to direct others here:

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Should-I-take-out-a-small-loan-to-raise-F...

 

(306 Views)