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Installment Loans/Credit

DonFico
Member

Installment Loans/Credit

I have a couple of installment loans that I'm about to pay off (auto and personal). I believe that having installment credit makes counts towards your credit worthless? My question is, does anyone have any low cost ideas for installment loan credit that won't needlessly put me in thousands of debt?

Message 1 of 5
4 REPLIES 4
SlideOrInsert
Regular Contributor

Re: Installment Loans/Credit

"Adding an installment loan the Share Secure technique"

chase
$8900
discover
$20000
citi
$19900
bofa
$30000
nfcu
$29000
nfcu
$16000
Garden Club Spade
 
Message 2 of 5
CreditGuyInDixie
Super Contributor

Re: Installment Loans/Credit


@DonFico wrote:

I have a couple of installment loans that I'm about to pay off (auto and personal). I believe that having installment credit makes counts towards your credit worthless? My question is, does anyone have any low cost ideas for installment loan credit that won't needlessly put me in thousands of debt?


The sentence in blue is a bit confusing.  You might want to try editing it so it says what you mean more clearly.

 

Regardless, the Share Secure Loan Technique is likely what you want.  The link you were given is a good place to start.  If you have family in the military, consider joining Navy Fed -- their SSL is well tested with the Technique.

 

Let us know if you need more help.

Message 3 of 5
Kforce
Valued Contributor

Re: Installment Loans/Credit


@DonFico wrote:

I have a couple of installment loans that I'm about to pay off (auto and personal). I believe that having installment credit makes counts towards your credit worthless? My question is, does anyone have any low cost ideas for installment loan credit that won't needlessly put me in thousands of debt?


Your old instalment loans are reported and can be seen, showing your history and good payments. You only take a hit with current credit mix points.  Depending on your credit score, age, history, number of accounts, old loans, etc, the score gain/loss can be from 70 points to less than 10.  I went from a 845 Ficos to 835's because of no installment loans within the last 2 years.  Do not know if it will continue to go down with time or that is all the loss I will see.  For me the 10 points is not worth the effort of playing the "installment loan game".   If it had dropped 70 points I would have gotten the NFCU loan, and worked the system. You could just wait a few months and see the impact on your scores.  Then decide if it a worthwhile adventure or not.

FNBO Cashback Visa (20k) / Bank-West Cashback MC (20k) / USAlliance 3% Visa (20k)
Two Old CU cards (20k each) -- (Sock Drawer) / Secret 3% MC (20k)
Ficos : 830 / AAoA : 9 yrs / AoOA : 24 Yrs / AoYA : 0
Message 4 of 5
SouthJamaica
Super Contributor

Re: Installment Loans/Credit


@DonFico wrote:

I have a couple of installment loans that I'm about to pay off (auto and personal). I believe that having installment credit makes counts towards your credit worthless? My question is, does anyone have any low cost ideas for installment loan credit that won't needlessly put me in thousands of debt?


If you do consider going the SSL route, keep in mind that although it avoids a hard pull, it does count as a new account, thus decreasing the age of newest account and average age of accounts, and adding an "account with balance" to your profile. Also remember its effect is primarily on FICO 8's and 9's, while the mortgage scores either shrug it off, or react only slightly.

 

 


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 5 of 5
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