Here is a good question for all you experts.
How much of an effect do installment, retail balances and bankcard balances have on FICO scoring?
I still see small incremental increases when my bankcard balances and retail balances change on reports. I especially see the utilization effect of both types of revolving accounts when new accounts and CLI are applied to updated credit reporting.
Even if for no rhime or reason, I believe the revolving balances play a role in FICO scores regardless of bankcard or retail. Usage increase a little at the same time a new account or CLI is introduced....a small incremental jump happens across the FICO scoring models. Incremental increase have occurred on my scores anywhere from 1 to 9 points on all bureaus.
Any theories on this......
(ie....total CL is $13K. Bankcard balances $3K. Installment balance reporting at 80%. Retail balances $300.......2 minimum payments of $25 each on 2 commenity account with balance pof $29 and $30.......effect TU up 1 point, EX up 6 and EQ up 7.
The impact of credit cards is the strongest. I suspect you can't reach the 800's without a revolving credit account.
The impact of installment loans is a decreasing function of credit history length. Once your credit score is in the 800's, the impact is small.
The impact of mortgages is greater than that of an auto loan, but is still a decreasing function.
The impact of installment loans is a decreasing function of credit history length. Once your credit score is in the 800's, the impact is small.
The impact of mortgages is greater than that of an auto loan, but is still a decreasing function.
