Installment Loan

[sectionals]

Hello good people. I am rebuilding and was wondering if it'd be a good idea to take out a loan and to my credit mix. DTI is currently 24% w/rental

payment. Verifiable income is 110K. AZEO and reporting account is at 11% utilization (1604/7300). Thank you for any advice you'd like to share in advance.

[gdale6]

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@sectionals wrote:

Hello good people. I am rebuilding and was wondering if it'd be a good idea to take out a loan and to my credit mix. DTI is currently 24% w/rental

payment. Verifiable income is 110K. AZEO and reporting account is at 11% utilization (1604/7300). Thank you for any advice you'd like to share in advance.

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You could do a share secured loan with a CU if you have no other open installment loans, reality is they only boost Fico for a few months towards the end of the term. Some CUs you can pay down immediately and push out next payment dates, this might help if you immediately bring the balance down to below 8.9% of the original amount. More important as to whether or not to do this would be what your current Fico score is, I dont see them listed.

[sectionals]

@gdale6 sorry about that, 629 EQ 637 TU and 652 EX. FICO 9s 700 EQ 696 TU 684 EX

[OmarGB9]

Do you have any open loans at the moment? Whether it's personal, student, auto, SSL, etc.

[sectionals]

@OmarGB9 None at the moment.

[gdale6]

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@sectionals wrote:

@gdale6 sorry about that, 629 EQ 637 TU and 652 EX. FICO 9s 700 EQ 696 TU 684 EX

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Your Fico 9s are pretty good, Im going to assume the others are Fico 8s. You might benefit with the type of loan I discussed in the last post. I used to say that anyone in a rebuild should have an installment loan but after doing most of mine without one and still to this day not having one since 2013 I can maintain high Fico in the range of 790-820s Im not quick to say one has to have it. Fico is geared more to revolving credit than fixed payment installment loans.

[sectionals]

Yeah the others are my 8s @gdale6. I guess I might just have to rely on Father Time to do what he does. EX FICO 8 was a 578 on 27 OCT 21so I'm thankful for the strides I've been making.

[jrwa81]

Credit mix has a much smaller impact on your credit scores than payment history and utilization.   Taking out a personal loan may only give you a few extra points for your credit mix.   That was my case when I took out a personal loan.  Personally, I would work on getting your current utilization down to 10% or less, which will probably give you more of a score bump than if you were to take out a personal loan.  Also, keep in mind that opening a brand new credit account will also decrease your AAoA, which will likely cost you a few points.  If you plan on applying for a large amount of credit in the near future, such as a mortgage or auto loan, I would avoid applying for any new credit.  You want to keep your DTI as low as possible.