Lack of Recent Loan Installment information-Need suggestions on where to go for great installment

[Focker69]

Hello,

I was recently denied for not having any installment activity. Can someone give me the top products that are good for this. My credit is pretty good aside of high revolving balances would I would like to mix it up a bit. Any insights is much appreciated!!

[Anonymous]

https://www.doctorofcredit.com/strengthen-credit-installment-loan-using-secured-loan-technique/ 

 NFCU SSL is the top suggestion 

Or Penfed, USBank, NFCU personal loans -- those being subject to credit approval

Free and easy one is Kikoff, but you cannot prepay it substantially like the others

[AllZero]

1. I would recommend you optimize your reported aggregate and individual utilization before applying for credit.

2. I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant

From SouthJamaica
NFCU SSL

From adrianaesque
Approved NFCU SSL - with detailed steps (May 2020)

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.

[Anonymous]

---

@Focker69 wrote:

Hello,

I was recently denied for not having any installment activity. Can someone give me the top products that are good for this. My credit is pretty good aside of high revolving balances would I would like to mix it up a bit. Any insights is much appreciated!!

---

Honestly, a denial can often include a random reason amd not necessarily all the true reasons. The creditor is just required to give you something as a reason why they denied you. You could get an installment loan, apply again, and they may give you another random reason like "lack of real estate loan". I would run out and get a mortgage at that point, but look at what elseay be the real reasons. Would they truly deny you entirely because of lack of a mortgage or an installment loan? Maybe, but perhaps there is more likely reasons before those.

I would say perhaps not having an installment loan is something working against you, but honestly, the high utilization (causing lowered scores) is significantly more of a reason that you were likely denied for more credit. Especially during this pandemic, lenders are tightening up quite a bit. They do not want to lend more money if it looks in any way you are struggling with you already have in credit. They fear it could be emotmwnt related that you cant pay more on your accounts and in turn do not want to extend you more credit to run up. I am not saying this is what you are doing, but banks are skittish right now. Lower utilization and in turn higher scores would likely yield better results to approval for more credit than an installment loan (more debt), while credit mix will not hurt and is something you can certainly do once perhaps you pay down your current debts.

Good luck!

[Revelate]

A strong credit profile has a mix of different products, I don't really think this is arguable either rationally or from a FICO scoring perspective.

Any random loan which doesn't cost much (a laudable SSL like NFCU or Penfed can cost you less than a Venti Mocha at Starbucks amortized over nearly 5 years) and yet can improve your credit mix.

While I agree that reasons can be a little random they aren't picked out of a vacuum, and most likely come from an actual UW algorithm which ideally for the banks would be third party, and that explicit reason is an actual reason code in some flavors of the FICO algorithm (I've seen it on auto enhanced and I suspect it might be on others) ultimately it's worth it to have some installment history on your report and modern versions of the algorithm want it to be an open tradeline hence playing with a reindeer games capable loan is the way to go.  By that I mean one you can pay ahead and it also advances the due date to something in the future more than one (or a few, cough DCU) payments out.

[firefox100]

That is what wrong with fico models take out loan just to improve your score or to get a bank to approve you for credit card is plan nuts. I personaly do not have any installment loans or mortages on my report and I have scores over 800, just pay your accounts on time and keep your ul as low as possible and pay on time.

[SouthJamaica]

---

@firefox100 wrote:

That is what wrong with fico models take out loan just to improve your score or to get a bank to approve you for credit card is plan nuts. I personaly do not have any installment loans or mortages on my report and I have scores over 800, just pay your accounts on time and keep your ul as low as possible and pay on time.

---

+1

I agree.

Especially pertinent to this case where OP has high revolving utilization.

[AzCreditGuy]

---

@firefox100 wrote:

That is what wrong with fico models take out loan just to improve your score or to get a bank to approve you for credit card is plan nuts. I personaly do not have any installment loans or mortages on my report and I have scores over 800, just pay your accounts on time and keep your ul as low as possible and pay on time.

---

+1

But yes remember a system that caters towards banks to get consumers in debt is just about that, you are penalized for not having debt with these dumb scores. 

[Kforce]

---

@Anonymous wrote:

---

@Focker69 wrote:

Hello,

I was recently denied for not having any installment activity. Can someone give me the top products that are good for this. My credit is pretty good aside of high revolving balances would I would like to mix it up a bit. Any insights is much appreciated!!

---

Honestly, a denial can often include a random reason amd not necessarily all the true reasons. The creditor is just required to give you something as a reason why they denied you. You could get an installment loan, apply again, and they may give you another random reason like "lack of real estate loan". I would run out and get a mortgage at that point, but look at what elseay be the real reasons. Would they truly deny you entirely because of lack of a mortgage or an installment loan? Maybe, but perhaps there is more likely reasons before those.

I would say perhaps not having an installment loan is something working against you, but honestly, the high utilization (causing lowered scores) is significantly more of a reason that you were likely denied for more credit. Especially during this pandemic, lenders are tightening up quite a bit. They do not want to lend more money if it looks in any way you are struggling with you already have in credit. They fear it could be emotmwnt related that you cant pay more on your accounts and in turn do not want to extend you more credit to run up. I am not saying this is what you are doing, but banks are skittish right now. Lower utilization and in turn higher scores would likely yield better results to approval for more credit than an installment loan (more debt), while credit mix will not hurt and is something you can certainly do once perhaps you pay down your current debts.

Good luck!

---

+ 1

[firefox100]

Problem is that when you get a denial letter from some banks you get computer generated crap reasons that not going to help. You say you are trying to get to 700 fico scores, if you are under 700 fico score then taking out a loan is not going to help it might do more harm then good. Credit mix is only 10 percent of scores. Give us some more info like do you have any lates showing up on your reports what are your balances in relationship to your credit limits. Payment history is 35 percent of fico score and utilization is 30 percent.

It would be nice that other banks would do what apple GS is doing give you a reason and how you can fix it and say check in each month for some time to see if you are making enough progress to see if we can make a approval  and so all of this with soft pulls.