topic Installment loans...do they have a huge impact on your credit score? in Rebuilding Your Credit

Installment loans...do they have a huge impact on your credit score?

Globalgirl — Thu, 16 May 2013 11:30:28 GMT

Hello,

Can anyone tell me how much installment loans affect your credit score. I am currently at 2% utilization on my credit cards. I do not have an auto loan. See installment loan details below. Do you think I'll see a decrease in my FICO score by adding the new loan? I know my mileage may vary, but just looking for a little input from the experts. Thanks in advance.

Current loan amount - $2,000 (balance $1186) paid off on 5/2
New loan amount - $2,700 - first payment due on 6/2
CC limits combined - $9700 (available credit $9473)

Let me know if additional information is needed to answer my question! Have a great day!

Re: Installment loans...do they have a huge impact on your credit score?

madmann26 — Thu, 16 May 2013 11:35:44 GMT

Installement loans do not factor into your utilization. They only account for 10% of your score and that goes towards the credit mix category.

Edit:

You may see a small decrease when the new account post since it will lower your AAoA.

Re: Installment loans...do they have a huge impact on your credit score?

Anonymous — Thu, 16 May 2013 14:38:26 GMT

Installment loans do have their own utilization separate from revolving but it is less than 10% of your score. And, yes, they do help with credit mix.

Re: Installment loans...do they have a huge impact on your credit score?

ando35 — Thu, 16 May 2013 20:22:02 GMT

Yes, mine went up about 20 points.