Adding an installment loan -- the Share Secure technique

[Whitebird]

Hi CGID

Thanks for clearing that up.  I wondered why I was getting the exact same scores if a different model was being used--well, it wasn't.  You can tell I'm not used to reading Vantage scores/reports.

Ask me anything!   I have 14 accounts, 8 open (6 credit cards, 1 bank LOC, 1 installment, the SSL; 6 accounts closed).  AAOA - 15 years.  Oldest accounts 38 years (2 accounts with that date tied opened the same month).

[Anonymous]

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@Anonymous wrote:
@Anonymous ran my Credit Check Total 3 B report. Equafax went up from 766 to 806=+40pts TU went from 786 to 825 =+39pts. Experian went 745 to 779=+34pts. No other changes were made...I kept CC utilization the same 1%. All cards 0 bal except one @3$. And all account aged 1 month but no integer was crossed...and no inquiries fell off...or became a year old.. I was shocked to get 40 pt increase..only was expecting maybe 25 or so...I am still in shock!

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I just got my update from amex experian.. up from 736-770= 34 pts also!

[Anonymous]

Thanks E2W. 

[Anonymous]

Great information. 

Here's a question. I have 2 installment accounts (mortgage and student loan) that are reporting very different on each of my reports. TU has no installment loans, EQ has only my mortgage account. EX has only my student loan, which reports sporatically. Do you think I would benefit from getting the Share Secure loan? 

In the past year I've added about 3 credit cards with $10,000+ in limits with 6 months of gardening and my scores have not moved much. I'm trying to figure out how to move them. 

[manyquestions]

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@Anonymous wrote:

Great information. 

TU has no installment loans,

EQ has my mortgage account.

EX has my student loan

Do you think I would benefit from getting the Share Secure loan? 

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From what you describe above, it will likely help on TU, but not on EQ or EX. It may actually lower your scores on EQ and EX if the additional account lowers your average age of accounts in a significant way.  

[Anonymous]

MQ is right.  It will help your TU but not your other two scores.  More importantly, be sure to read through the Theory Behind The Technique section so that it is clear to you why you'd get a big TU boost but not one with EX or EQ.  It's crucial to understand why things work the way they do so that you can make the best decisions for yourself.

How many open accounts do you have?  How many closed accounts?  If you have a small number of accounts, adding an SS loan is a cheap way to create a "thicker" profile.  Always be sure, if you ever do add an SS loan, to use the full technique as well (i.e. paying it to < 9% etc.).

Have you tried doing the straightforward thing of making sure that most of your credit cards are reporting at $0 with one card reporting a small positive balance?  That's the easiest way to get the biggest boost (aside from removing negatives).

Sounds like you may not have a need for big scores anytime soon (you already have a mortgage, etc.).  You probably need to allow your accounts to age.  Personally I'd grab the SS loan soon for TU and then just allow your profile and accounts to age.

[Anonymous]

My open account vary depending on the bureau. TU being the tiniest. I'd disputed a bunch of incorrect stuff last year and rather than correcting it, they just removed them. 

TU - 10 - 4 opened, 6 closed

EQ/EX - 14 - 5 opened, 9 closed

Currently 4 open revolving account, 1 with under 30% balance others 0. 

I went back and looks at my scores from Mar and Aug and there's a 10-12 point increase across all 3, with the 30% ut. I have tried doing the straight forward under 10% utilitization before, didn't notice much of a change. I'll try it this month and see what I get. You are correct about me not needing it for anything major at the moment, I have a car that is on it's last legs and I'm trying to hold out until Jan before making a move. 

I'll go ahead and get the SS for TU. Thanks for respondign MQ and CreditGuy

[Anonymous]

You're very welcome, SkyHigh.

As far as your credit cards go, the thing to focus on is total utilization (all credit limits considered together).  You mention that all your cards are at $0 except one at under 30%.  If the four cards have roughly the same credit limit, then your total util is already at under 9% and I agree that you are unlikely to get any benefit from making sure the remaining card reports at a smaller balance.  But if that one card has a much higher CL than the others, then you might well get some benefit since your total U would be at least 11% or perahps significantly more.

I'd aim for a total util of 1-3% for two months in a row.  That should be easy to do -- just have the remaining card report a small balance.  You want to do that solely to see how the scores might go.  No need to do it every month, unless you really want to.

Best of luck with the car and the SS loan.

[Anonymous]

CGID, thanks again! 

Discover updated today.. 796-762=34 pt increase

Last update will be citi, so I will report back with more good news in a few weeks.

[Anonymous]

Your Citi update will be using FICO 8 Bankcard Enhanced, right E2W?