topic Re: Will auto loan increase my FICO score? in Understanding FICO® Scoring

Will auto loan increase my FICO score?

bobkmn — Thu, 17 Apr 2014 18:11:04 GMT

Currently the only credit sources on my FICO are credit cards. I have read that having some other types, such as an installment

loan can show diversity in credit and help increase the score. Assuming that is correct (opinions on that too, thank you) I have

just co-signed an auto loan for my son's fiance (already did the debate as to whether I should or not) because she had just

gone through a divorce and her ex didn't do her well, so she has some repair work to do. Turns out that she got the loan at

2.9% which appears to be quite good -- guessing I had a 'hand' in that. Since I am listed as a co-buyer I assume that the

loan will appear on my credit reports. As long as she stays current on the payments, which I know she will, will the existence

of that loan help my FICO score?

Thanks!

Bob

Re: Will auto loan increase my FICO score?

Anonymous — Thu, 17 Apr 2014 18:21:04 GMT

An open installment loan can help your scores, but typically the gain is not a large one.

This sort of thing fits within the FICO scoring category of "mix of credit types", which has a 10% overall weight.

Re: Will auto loan increase my FICO score?

bobkmn — Thu, 17 Apr 2014 19:17:05 GMT

@Anonymous wrote:
An open installment loan can help your scores, but typically the gain is not a large one.

This sort of thing fits within the FICO scoring category of "mix of credit types", which has a 10% overall weight.

Thanks!

Re: Will auto loan increase my FICO score?

myjourney — Thu, 17 Apr 2014 19:19:32 GMT

How a FICO Score breaks down