tb_purchasesonline wrote:Overall, I'm very satisfied w/ my FICO score (817 as of today).
Based on existing literature, I know how the FICO score breaks down (i.e., 35% Payment History, 30% Amounts Owed, 15% Length of Credit History, 10% New Credit, 10% Types of Credit or "Other").
My question is pertaining the 10% of "Credit Mix". Based on my most recent credit report, I score "Excellent" on all categories but only "Fair" on the credit mix.
From my perspective (and I think it's somewhat reflected in my high score), I have a good credit mix. That is, I have the following type of credit account:
- 2 mortgage accounts (mortgage and home equity) -- approximately 90% of my debt
- 2 installment accounts (car loans) -- approximately 9% of my debt
- 10 credit cards (only 1 card with a balance) -- approximately 1% of my debt
Based on the information above, is there anything obvious that "sticks out" as to why the "credit mix" is considered only "fair" (again, in contrast to all else being excellent)?
Thank you,
Tom
FICO does score each of the categories in the percentages you mentioned above.
However, from your description of the report you're referring to, it sounds like you may have a non-FICO score because reports you get from myFICO.com do not grade your "Credit Mix" on a "Excellent, Fair, etc" basis. Those grades are used in other scoring model reports such as Vantage scores - but their score category wieghts (e.g. 10% for Types of Credit) may be different from the FICO model.
To get an accurate idea of what your FICO really is, you might consider getting your EQ or TU report from this site.
Starting Score: EQ 675
Your score and your credit report are part of the same score report? I ask because I don't remember a myFICO report commenting on the credit mix. Did you get it from the Equifax web site? If so, is the score explicitly listed as a FICO score rather than a credit score?
Your credit mix certainly looks excellent to me. As you noted, its impact is small. And if the score is EQ FICO, it's unlikely to increase no matter what, as you have joined a handful of EQ 817 people who have hit the ceiling. Congratulations!
Leaving aside the fako vs fico thing, there is one element missing from your mix: uncollateralized installment debt. Mortgages and auto loans are considered collateralized (or "secured", though that term freaks out people on this board) because if you default, there is a physical asset the lender can recover. Personal loans are considered uncollateralized or unsecured, because there is nothing to recover if you default. FICO does consider this a separate category. This past July, I took out a personal loan for some home renovation (not a home equity loan). Despite it being a new account, which would usually drop your score, my score went up by 15 points. Nothing else changed. I have no idea if the impact would be that big for someone already over 800, as I was in the 690s when I did it.
Cdnewmanpac wrote:Leaving aside the fako vs fico thing, there is one element missing from your mix: uncollateralized installment debt. Mortgages and auto loans are considered collateralized (or "secured", though that term freaks out people on this board) because if you default, there is a physical asset the lender can recover. Personal loans are considered uncollateralized or unsecured, because there is nothing to recover if you default. FICO does consider this a separate category. This past July, I took out a personal loan for some home renovation (not a home equity loan). Despite it being a new account, which would usually drop your score, my score went up by 15 points. Nothing else changed. I have no idea if the impact would be that big for someone already over 800, as I was in the 690s when I did it.
Seriously? This may answer my question for what to do with my unsecured personal loan when I'm looking to apply for an auto loan in the spring. I planned to pay it off with taxes, but maybe I'll pay off all but a portion and milk it for a bit longer. That's really interesting
Jutz wrote:
Cdnewmanpac wrote:Leaving aside the fako vs fico thing, there is one element missing from your mix: uncollateralized installment debt. Mortgages and auto loans are considered collateralized (or "secured", though that term freaks out people on this board) because if you default, there is a physical asset the lender can recover. Personal loans are considered uncollateralized or unsecured, because there is nothing to recover if you default. FICO does consider this a separate category. This past July, I took out a personal loan for some home renovation (not a home equity loan). Despite it being a new account, which would usually drop your score, my score went up by 15 points. Nothing else changed. I have no idea if the impact would be that big for someone already over 800, as I was in the 690s when I did it.
Seriously? This may answer my question for what to do with my unsecured personal loan when I'm looking to apply for an auto loan in the spring. I planned to pay it off with taxes, but maybe I'll pay off all but a portion and milk it for a bit longer. That's really interesting
I'd bet that a more satisfying feeling would be to pay off your loan 
