Braces

[Anonymous]

so I'm planning on getting braces in the near future and I was wondering if putting braces on an installment plan would up my credit score(s). I'd have the cash to pay for it but I was wondering if paying them off on an installment plan would be benefit my credit score. 

[Anonymous]

If you don't have an installment loan, then yes. Otherwise, no. 

[RobertEG]

Adding a non-mortgage, non-auto installment loan wont help much in the FICO scoring arena, and almost certainly, not immediately.

You will incur a hard pull associated with the loan application,and if approved, and immediate hit in your AAoA by the additon of a new TL with zero age.

I would not pay interest simply for a few points possible but iffy score gain.

[Anonymous]

You should never take a loan just to boost your credit score. if you have one, put it on a 0% APR card and pay it off over the period of zero interest.

[Imperfectfuture]

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@RobertEG wrote:

Adding a non-mortgage, non-auto installment loan wont help much in the FICO scoring arena, and almost certainly, not immediately.

You will incur a hard pull associated with the loan application,and if approved, and immediate hit in your AAoA by the additon of a new TL with zero age.

I would not pay interest simply for a few points possible but iffy score gain.

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Not true.  Mix of credit is 10% of score, about 50 pts.  And fico counts any installment loan in the mix.  You can do a secured installment loan with credit union for the braces amount, and have apr around 2.2 to 3.2.  If you have auto or home loan, you don't need this.  But I saw a SERIOUS jump in my auto enhanced and mortgage scores (all are over 700), only five months into 4 year secured loan, and I have no mortgage, auto nor any other history than revolvers.  The loan also acts as a buffer to stabilize against new accounts and utilization changes.  50 pts is not a few pts (10% of mid way between 350 and 850).  

It's also why you see drop when you pay any loan off.

[jbsea]

+1