Installment Loan Help

[Anonymous]

I have gotten this following excuse from several CLI requests lately.

• There is a lack of recent installment loan information on your credit file.

This isn't true as I had a $1000 installment loan from my bank that I paid off early in Dec. so it shows as closed "Pays as Agreed". All green, no lates, 100% good acct.

Should I get another one and let it run out to full term? Don't need an auto and not ready for a mtg but would love to see my CL climb some and this is a thorn in my side seeing it every time I'm denied a CLI.

[gdale6]

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@Anonymous wrote:

I have gotten this following excuse from several CLI requests lately.

• There is a lack of recent installment loan information on your credit file.

This isn't true as I had a $1000 installment loan from my bank that I paid off early in Dec. so it shows as closed "Pays as Agreed". All green, no lates, 100% good acct.

Should I get another one and let it run out to full term? Don't need an auto and not ready for a mtg but would love to see my CL climb some and this is a thorn in my side seeing it every time I'm denied a CLI.

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Fico 8 will throw that once the loan is closed it no longer is factored in as recent open. Frankly unless you are just starting out I see no reason to run out and get another one just for Fico purposes.

[Anonymous]

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@gdale6 wrote:

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@Anonymous wrote:

I have gotten this following excuse from several CLI requests lately.

• There is a lack of recent installment loan information on your credit file.

This isn't true as I had a $1000 installment loan from my bank that I paid off early in Dec. so it shows as closed "Pays as Agreed". All green, no lates, 100% good acct.

Should I get another one and let it run out to full term? Don't need an auto and not ready for a mtg but would love to see my CL climb some and this is a thorn in my side seeing it every time I'm denied a CLI.

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Fico 8 will throw that once the loan is closed it no longer is factored in as recent open. Frankly unless you are just starting out I see no reason to run out and get another one just for Fico purposes.

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I agree. I would also note that many people get approved for any card they want with no open installment loans. The decision is based on overall profile, and that's just a reason they toss in with the denial.

[takeshi74]

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@Anonymous wrote:

I have gotten this following excuse from several CLI requests lately.

• There is a lack of recent installment loan information on your credit file.

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This is not necessarily why you were not approved.  It is one reason why your score is what it is.  FICO scoring and a creditor underwriting criteria are two entirely different things so don't conflate them.

As far as FICO scoring is concerned, consider the typical weights of the standard factors:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Credit Mix is small.  Definitely use the reasons in denial letters as a starting point but you really need to assess your own reports.  There are probably bigger issues that you need to address and your lower limit cards and the FICO 8's in your signature are also indicative of that.

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@Anonymous wrote:

This isn't true as I had a $1000 installment loan from my bank that I paid off early in Dec. so it shows as closed "Pays as Agreed". All green, no lates, 100% good acct.

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As stated above, you lose the benefit to Credit Mix when closing your only installment.

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@Anonymous wrote:

Should I get another one and let it run out to full term?

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No.  Don't put the cart before the horse.  Your financial needs should dictate whether or not you add an installment, not scoring or denial letters.  Additionally, there are bigger issues that you need to address.