So now what do I need to do?!

JohnJRambo · ‎05-31-2016

**UPDATED SCORES/STORY AT BOTTOM OF PAGE NOW**

My FICO scores are 756 Equifax, 769 Transunion, and 746 Experian

I have 4 credit cards, 3 Capital One and 1 Chase

I'm currently using approximately 13% of my available credit (about $1800 of $14,000)

I just recently finished paying off a student loan in full

I've never had a auto loan, mortgage loan, or personal loan

I'm interested in buying some property or possibly a home in the not too distant future

I believe the fact I only have revolving credit card accounts will hurt me?

Do I need to go get a small personal loan, or auto loan? Just so I will have different types of loans reflecting on my credit report when/if I want to purchase some property or a home?

Thanks in advance!

Anonymous · ‎05-31-2016

@JohnJRambo wrote:
My FICO scores are 756 Equifax, 769 Transunion, and 746 Experian

I have 4 credit cards, 3 Capital One and 1 Chase

I'm currently using approximately 13% of my available credit (about $1800 of $14,000)

I just recently finished paying off a student loan in full

I've never had a auto loan, mortgage loan, or personal loan

I'm interested in buying some property or possibly a home in the not too distant future

I believe the fact I only have revolving credit card accounts will hurt me?

Do I need to go get a small personal loan, or auto loan? Just so I will have different types of loans reflecting on my credit report when/if I want to purchase some property or a home?

Thanks in advance!

No. Having unpaid debt would hurt you more. Just keep doing what you're doing.

RonM21 · ‎05-31-2016

I would not take on anything like that unless you really know what you are doing. You are doing well so far. Maybe look.at some of the threads about adding loans to get s feel for what you.could be getting in to.

Total CL: $321.7k

UTL: 2%

AAoA: 7.0yrs

Baddies: 0

Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

Revelate · ‎05-31-2016

@JohnJRambo wrote:
My FICO scores are 756 Equifax, 769 Transunion, and 746 Experian

I have 4 credit cards, 3 Capital One and 1 Chase

I'm currently using approximately 13% of my available credit (about $1800 of $14,000)

I just recently finished paying off a student loan in full

I've never had a auto loan, mortgage loan, or personal loan

I'm interested in buying some property or possibly a home in the not too distant future

I believe the fact I only have revolving credit card accounts will hurt me?

Do I need to go get a small personal loan, or auto loan? Just so I will have different types of loans reflecting on my credit report when/if I want to purchase some property or a home?

Thanks in advance!

How far in the not so distant future, and what explicitly are your mortgage scores?

Pay that $1800 down to $1000 or less on one credit card, have the other 3 report zero, and you'll be optmized for 2/3 bureaus on the mortgage trifecta. At that point I'd pull my scores here (3B) and see if I even needed to worry about EX.

FICO 8 does want you to have an open installment loan at a pretty balance, but it's irrelevant to 2/3 of the mortgage scores that 99.99% of the mortgages in the united states are underwritten on so I wouldn't worry about it especially if we're talking soonish to mortgage app.

takeshi74 · ‎06-01-2016

@JohnJRambo wrote:
My FICO scores are 756 Equifax, 769 Transunion, and 746 Experian

@JohnJRambo wrote:
I'm interested in buying some property or possibly a home in the not too distant future

Always cosnider the specific scoring model as well as the CRA when referring to scores. Keep in mind that FICO does not have just one scoring model. See also the Understanding FICO Scoring subforum and its stickies. The specific model used will have an impact on the number generated. I'm assuming that the scores you posted are FICO 8's. Mortgage lenders do not use the FICO 8 model. However, if you're in that range with FICO 8 you're probably in pretty shape with your mortage scores as well.

You definitely need to consider the timeframe that you're looking to get the mortgage. General advice is no new credit 6 months to 1 year prior. Talk to your mortgage lender if you have concerns about your credit. Find out what they're specifically looking for.

@JohnJRambo wrote:
I believe the fact I only have revolving credit card accounts will hurt me?

Don't conflate not getting the benefit of having an active installment with hurt. Your FICO 8's are good.

@Anonymous wrote:
No. Having unpaid debt would hurt you more. Just keep doing what you're doing.

Be careful relying on oversimplifcations like that. All debt is not assessed the same. Credit Mix is a factor:

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

However, I wouldn't recommend taking out an installment for scoring purposes. Don't put the cart before the horse. Select credit products that suit your needs/wants. Certainly consider the impact to your credit profile but don't let score drive your decisions.

JohnJRambo · ‎06-03-2016

**Since I wrote this the other day my FICO 8 Scores have changed to: 764 Equifax, 785 Transunion, and 754 Experian. I haven't ran a 3B report since March of 2016, and then my FICO Score 2's were: 756 Equifax, 772 Transunion, 767 Experian. I believe these scores may be a touch higher now, and probably no lower ( if any only a few points), and will run another 3B report in the beginning of July**

Ok, So this morning I went to my local credit union that I bank with just to let them know that I was considering a mortgage loan. I didn't want a hard pull on my credit, so I told the loan officer that my scores are fine, and that the only credit I had was revolving accounts (credit cards). Also, I told her my background was construction and that I job hopped a lot since I was on the road (roughly the past 6 years). I was told that "they" (I assume the folks who vote "yay or nay" on the loans) wanted to see one year of employment with the same employer. Which sucks, because I recently took a job at home that I start this upcoming week, bummer. A year isn't that long, but then again it is, know what I mean Vern?! And that they look for 3 different trade lines on the credit report. Revolving, installment, and one other, the name escapes me for now, but pretty much a vehicle/auto loan. Well, I went ahead and got a secured loan there to just get something going that direction. I let them have $1500 out of my savings account and agreed to pay it off in year, they'll make a whole $18 bucks off of me on that loan. I'm just a little irritated with the whole situation. A couple years ago, my credit sucked, and I buckled down and got everything straightened out, boosted up my scores, took responsibility for my younger days and stupid screw ups, and paid for it heavily. Fast forward to now, good/above average scores but I feel like I'm being put on the back burner for not financing my vehicles, and not taking out loans for things. In a sense I do understand the employment thing, but I haven't been unemployed, I've just went where the money was and at different times it was with different companies. I guess they'd rather see a lengthier stay making less money, than bouncing around trying to make a good living. To each their own I assume, their game their rules I guess. But for now I think I'm going to try to buckle down, live simple, stash a little money back when I can, and see what happens in the next 12 months. I am going to consider financing a ATV, Motorcycle, or small vehicle as long as it doesn't suck up too much of my cash. I appreciate everyone's input on the matter. Feel free to give me your thoughts, as always they are much appreciated.

JohnJRambo · ‎06-03-2016

**Side note rant, in that year of "simple living", I'm gonna shell out approximately another 9K in rent alone...sickening? Or just the cost of living? Lol, can't do nothing but laugh at this point**

Grafton88 · ‎06-03-2016

John,

Now that you have taken out this loan. You will get a nice boost in your score if it is paid down to under 9%. What you want to do is not have an Auto-Pay set up. You pay down all but say 8% of the loan early on. You then make small payments until the end of the loan term.

Anonymous · ‎06-04-2016

Seems to me like you're overthinking this and placing too much importance on what one employee of one financial institution said. If you're looking to buy a home, there are lots of different banks and credit unions that provide mortgages, and they each have their own preferences and requirements. Without actually checking your credit, the employee you talked to could only say their preferences (the "ideal candidate"), and preferences are not the same as requirements (what you actually need to get the mortgage). With all your FICO version scores as good as it seems they are, then you're very likely to get a mortgage with a good rate when you apply for one.