Mix of credit

[Anonymous]

Hi everyone. I am really confused now with this mix of credit. And about to get a selflender but here is the problem.... i checked on here my report it says i have a good mix of credit. Says 10 cc, 5 loans etc...
But in reality i only have open 7 credit cards and no other type of loan. Now worried if report is counting closed loans and when i get a selflender i will not get rewarded for credit mix for this only new loan i will have.is my report counting closed loans? I have zero loans now and says a have a very good credit mix! Im confused.

[Anonymous]

Mix of credit doesn't account for much points.  It's really just something they use to get you to apply for things you don't need.

If you need an SSL for an extra 20-30 points then go for it  but, otherwise it's not a big deal. 

Don't take the hit to make the marketing people happy.

[Anonymous]

Yes im thinking about a selflender but i will not do it if closed past loan accounts still counts. Does it? I had loans before but they are all closed. Not sure why score is saying i have a good mix then?

[Anonymous]

Closed loans still count for the purposes of credit mix.  Open loans seem to be scored more favorably than closed because like the revolving portion of your score, you are scored on how you are currently managing your accounts, not what you have done in the past(assuming it is closed in good standing).  

It is common for people to lose points when they pay off their only open installment loan.  The answer is a little more complex than that though.  If you just get a new loan, you are essentially at 100% utilization.  As time goes by and the amount you owe compared to what you borrowed decreases, you scores should improve gradually.  When most people pay off a loan, they are closing an active account with ideal utilization for scoring purposes.  While this may be great that you have successfully paid off something like a car, it probably won't be so great from a scoring perspective..

[Anonymous]

thank you. I have two closed car loans never late and mortage closed all them late and say paid but settled because was a short sale. Not having any loans at the moment and those bad ones from the short sale, to compensate do you think it will be a good idea to get a two year just like $500 self lender loan? Being $500 only i guess would not hurt so much my utilization right? And by the time i am 1 year 1/2 in the loan i will be looking for a mortgage so i am trying to improve my score now and be proactive.

[Anonymous]

The 20-30 point scoring boost only kicks in when you are under 8.9% of the original loan. Since you already have installment accounts on your report, credit mix is satisfied, so you would actually lose points for opening a Self Lender account. 

What you really want to do is find a loan like an SSL that you can pay down to <8.9% and have it push your next due date out many years. That will give you a solid boost that will last until you pay off the loan whereas Self Lender will only give you that boost for a month or two at the very end of the loan. 

I opened a SSL with Navy Federal and got a 20-30 point boost across the board once the SSL reported it was paid down to 8.9% and it has remained for a few months now. That was worth it since it's a 60 month term. I had closed and paid student loans and a closed and paid personal loan on my reports and got that scoring boost. 

[Anonymous]

Thank you i have no loans right now only CC but i researched and dont find any SLL like you said that will allow me to do that. Im not military. Some also will do a hardpull and i have the risk of paying ahead and they not allow the loan to be open long enough. I am worried going through all this get a hardpull and the bank not even let the loan be open at that low amount for a long time. I need to be on the safe side.