@Anonymous wrote:I have a prime loan from Lending Club, its for 36 months and there are 8 payments left. I took out this loan to mainly keep my credit mix active as I so not have a mortgage or any other type of loan other then credit cards and usually one car loan.
I bought a new car about two months ago, traded in a car and the dealer immediatly paid off the loan on my trade in. However, the new car loan was booked out and I made 8 payments on it so far. Payments show as credited on the BMW Financials web site. All is good there.
BMW financial to this date has still not reported the new loan to any of my credit reports. I was going to pay off the Lending Club loan but would that mess up my open credit mix? as the only other open accounts are credit cards.
Others will be better informed than I am on this, but here's my $0.02 worth!
First, find out ASAP why your car payments haven't been reported yet.
Next, paying off your existing loan shouldn't harm anything, as its history will remain on your credit reports for several years. Meanwhile, once your new car loan starts reporting and builds history, that will be a plus.
And, with all that said, I just want you to know that I *personally* don't believe in that 'ideal credit mix' rule! My reason? I haven't had a loan of any kind in eons, and my scores are in the 820s. (I own my home outright, and I haven't had a car loan for many years; I don't have any other kind of loan history.)
@Anonymous wrote:I have a prime loan from Lending Club, its for 36 months and there are 8 payments left. I took out this loan to mainly keep my credit mix active as I so not have a mortgage or any other type of loan other then credit cards and usually one car loan.
I bought a new car about two months ago, traded in a car and the dealer immediatly paid off the loan on my trade in. However, the new car loan was booked out and I made 8 payments on it so far. Payments show as credited on the BMW Financials web site. All is good there.
BMW financial to this date has still not reported the new loan to any of my credit reports. I was going to pay off the Lending Club loan but would that mess up my open credit mix? as the only other open accounts are credit cards.
(mod cut-not here please)
Thank you in advance
Mark
I wouldn't fret about it. When it reports it's not going to help your scores, so if it never reports that's ok too.
@Anonymous wrote:Thank you. I had no idea that I didn't need open installment loans. I will call BMW Financial tomorrow to find out when they will report it as it is not on any of my reports yet. I never had a mortgage on my house either so no mortgage history at all. The highest I have seen my FICO score was at 786 a few months back, now it hovers around 771. I know it is my fault. Synchrony closed 7 of my credit cards in 10/20 and since then I applied for and received 18 new cards plus many CLI's. I am now done with that so my scores should re bound in the near future.
Thank you for your help.
Mark
@Anonymous: No, you don't need open installment loans, but that's part of the "credit mix" portion of your FICO scores. Credit mix is worth about 55 points of your FICO 8 scores. Without at least one open installment loan, you're leaving points on the table. You can replace those missing points with credit age, but that takes years. You'll reach higher scores faster with at least one open installment loan.
If you close the Lending Club loan right away, your new auto loan will likely report before your closed Lending Club loan does, so you won't see how many points you'd lose when all your installment loans are closed. If all your new CCs have already reported, then I would estimate your 771 would drop down to the 750s range with no open installment loans and jump back up to around 760 when your new auto loan reports with 8 payments already paid.
