topic Re: Non-mortgage installment loans on the quest to 850 in Understanding FICO® Scoring

Non-mortgage installment loans on the quest to 850

KittySaysMeow — Fri, 06 Mar 2020 21:04:14 GMT

First off, I really need to thank this forum for everything it's already done for me. Back when I was living in my car, clawing my way out of Chapter 7 BK, and my FICO scores were in the toilet (I once had a 380 FICO, not sure which version), this forum gave me the timely advice to get where I am now. For anybody in a similar situation, do know that there is hope if you persevere.

Today, my scores all fluctuate in the 780 to 800 range, all three bureaus, FICO 8 and 9. I have multiple mortgages (rental properties), a couple dozen credit cards, and all derogs (including the BK) are gone. I do all zero except one (AZEO), and always report less than 1% card utilization, pay in full every month. Mortgages all have high B/L ratios, since they're all within the last few years. I do have paid off student loans still reporting, and I've done a couple of those AmEx personal loans for a few months, then paid them off, so they report, but aren't active.

I just went on a credit card churn surge (playing the points/rewards game), so my inquiries are sky high, but I'm about to enter another long gardening period. One of my goals is to get to an 850, for no other reason than I like to play the game.

There seems to be a debate on the forums as to whether or not non-mortgage installment loans are necessary for achieving an 850, but I cannot find any reported data points of 850 with multiple mortgages and no other installment loans. I'm wondering if I should take out a small installment loan (even a credit union share secured loan, do the SSL trick), maybe an auto loan (my car is paid for, but I wouldn't mind buying an older used pickup as a knock-around work vehicle) and do that now before I start gardening, or if it simply doesn't matter with multiple mortgages reporting.

I guess this is a credit mix question.

I realize that 850 is an extremely pointless goal, but just as with investments and other things, I've come to enjoy playing these finance games for no other reason than to see if I can win.

Thank you, I look forward to an enlightening discussion.

Re: Non-mortgage installment loans on the quest to 850

AllZero — Fri, 06 Mar 2020 21:08:10 GMT

I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.

Re: Non-mortgage installment loans on the quest to 850

AllZero — Fri, 06 Mar 2020 21:10:16 GMT

If you have an open mortgage loan, getting another loan will be redundant.

Re: Non-mortgage installment loans on the quest to 850

Anonymous — Fri, 06 Mar 2020 21:42:05 GMT

@AllZero wrote:
If you have an open mortgage loan, getting another loan will be redundant.

Agreed.

Re: Non-mortgage installment loans on the quest to 850

Revelate — Fri, 06 Mar 2020 21:59:01 GMT

All of my data suggests mortgages count same as SSL's.

No one has ever shown me concrete data otherwise, though it's unfortunately hard to test with mortgages because almost none of us pay them off quickly; I wouldn't bother with a non-mortgage loan and all the reason codes indicate mortgage or non-mortgage too regardless of how some bureaus and CMS's broke it out on their individual fluff presentation.

Re: Non-mortgage installment loans on the quest to 850

KittySaysMeow — Fri, 06 Mar 2020 22:21:52 GMT

Thank you for confirming what I suspected. I will enter gardening mode without further ado.

Many thanks!

Re: Non-mortgage installment loans on the quest to 850

AllZero — Fri, 06 Mar 2020 22:25:10 GMT

Good luck on your credit journey!

Re: Non-mortgage installment loans on the quest to 850

Anonymous — Fri, 06 Mar 2020 22:27:13 GMT

Good luck!

Re: Non-mortgage installment loans on the quest to 850

SouthJamaica — Fri, 06 Mar 2020 22:31:44 GMT

@KittySaysMeow wrote:
First off, I really need to thank this forum for everything it's already done for me. Back when I was living in my car, clawing my way out of Chapter 7 BK, and my FICO scores were in the toilet (I once had a 380 FICO, not sure which version), this forum gave me the timely advice to get where I am now. For anybody in a similar situation, do know that there is hope if you persevere.

Today, my scores all fluctuate in the 780 to 800 range, all three bureaus, FICO 8 and 9. I have multiple mortgages (rental properties), a couple dozen credit cards, and all derogs (including the BK) are gone. I do all zero except one (AZEO), and always report less than 1% card utilization, pay in full every month. Mortgages all have high B/L ratios, since they're all within the last few years. I do have paid off student loans still reporting, and I've done a couple of those AmEx personal loans for a few months, then paid them off, so they report, but aren't active.

I just went on a credit card churn surge (playing the points/rewards game), so my inquiries are sky high, but I'm about to enter another long gardening period. One of my goals is to get to an 850, for no other reason than I like to play the game.

There seems to be a debate on the forums as to whether or not non-mortgage installment loans are necessary for achieving an 850, but I cannot find any reported data points of 850 with multiple mortgages and no other installment loans. I'm wondering if I should take out a small installment loan (even a credit union share secured loan, do the SSL trick), maybe an auto loan (my car is paid for, but I wouldn't mind buying an older used pickup as a knock-around work vehicle) and do that now before I start gardening, or if it simply doesn't matter with multiple mortgages reporting.

I guess this is a credit mix question.

I realize that 850 is an extremely pointless goal, but just as with investments and other things, I've come to enjoy playing these finance games for no other reason than to see if I can win.

Thank you, I look forward to an enlightening discussion.

It "simply doesn't matter with multiple mortgages reporting"

Re: Non-mortgage installment loans on the quest to 850

Thomas_Thumb — Sat, 07 Mar 2020 02:06:53 GMT

@KittySaysMeow wrote:
First off, I really need to thank this forum for everything it's already done for me.

There seems to be a debate on the forums as to whether or not non-mortgage installment loans are necessary for achieving an 850, but I cannot find any reported data points of 850 with multiple mortgages and no other installment loans. I'm wondering if I should take out a small installment loan (even a credit union share secured loan, do the SSL trick), maybe an auto loan (my car is paid for, but I wouldn't mind buying an older used pickup as a knock-around work vehicle) and do that now before I start gardening, or if it simply doesn't matter with multiple mortgages reporting.

I guess this is a credit mix question.

I realize that 850 is an extremely pointless goal, but just as with investments and other things, I've come to enjoy playing these finance games for no other reason than to see if I can win.

Thank you, I look forward to an enlightening discussion.

There should be no debate on this. Ability to get Fico 8 850 scores with only a mortgage has been known and documented for many years. An SSL loan will not boost Fico 8 scores if you already have an open mortgage.

Example pasted below: