Contributor
Croselx
Posts: 139
Registered: ‎07-31-2012
Re: Should I take out a small loan to raise FICO score?

I asked this question 6+ months ago. At the time I had only 2 CCs, both had a combined UTIL of over 80% and I always got denied for everything, CLI, new cards, etc. I did took out a loan ($1K) and while I didn't knew my FICO score at the time, my CK FAKO dropped a considerable amount of points (60) (and didn't really recover until I added more accounts later on). I still couldn't get approved for CLI or new cards after taking the loan, it wasn't until I paid off my cards to below 10% (0% really) that I could get my first CLI and new accounts.

 

I am not sure if my installment loan has helped any, it shows an outdated balance from 4 months ago on TU and EX, and doesn't appear on EQ (have had this same thing happen to a cousin with a loan as well). It will probably help my AAOA and account mix down the road, but in the short term CCs (keeping UTIL low, paying on time, etc) seemed to be the most important factor.

 

IMO, you should only take credit out that you need and/or will use and eventually you will have a strong and varied portfolio. If I could redo it again I wouldn't have taken the $1K loan as it is costing me interest. Patience is key.

As of Feb: AAoA 1 year, 10 months
CK TU: 740; Wal-Mart TU FICO: 721
CS EX: 715
8 CCs, 15 total accounts.
Negs on report: 1 30 day late aged 3 years
5 inquiries