I have a current auto loan through a high risk bank and 2 other closed loans through them. On my CR it says "Installment Loan" but not "Auto"...I work at a dealership and look at people's CRs all the time and usually it says Auto in the TL. Does this matter? Will it decrease my "Auto Enhanced" credit score? Also, I read somewhere that installment loans DO NOT increase credit score, is this true? Thanks for the help guys!
Starting Score: (05/2010) 650
You had me a little bit curious, so I just checked CCT to see how my three TL's are reporting for my car tradelines and it's a mixed bag - all three lenders, MBFinancial, Ford Motor and Toyota Financial do not all nec. report as auto loans - in some cases they do, or they use "installment" as well or "lease". I'm thinking this is not a big deal b/c what the heck would it be if it wasn't a car? Not a tube of lipstick!! lol. I'm not so sure that lacking the verbiage of auto is significant when the TL is an obvious auto lender...maybe someone else could chime in.
Who is the lender, can you share?
Auto loans are installment loans and they are part of the credit mix that FICO does like to see. Just getting a new auto loan may not improve your score, but it could,if you are lacking the credit mix, but I'm not so sure the improvement is very large, but rather the opposite, small gain.. I did not see a significant increase when I paid off my lease, utilization is not scored like a CC pay off would be. However, a succesful paid never late auto carries some weight when it's time for the next auto loan, especially those lenders that use fico auto enhanced versions.
I work at a dealership so I pulled my "Auto Enhanced" CR through Equifax and also through MyFICO Score Watch. The loan company I go through is Reliable Credit here in Oregon.
Did you see your auto enhanced score then when you pulled? was it higher or lower than your fico?