Prior research indicates closed loans do count toward mix. The same sources, one being Liz Weston, who gained insight fron interviews with Fico representatives, indicate revolvers must be open to count toward mix.
Here is an old thread on the topic:
There is the continual misconception that all the Fico 8 points available from an open installment loan are mix related. That's not true. The majority of potential installment points relate to payment history and amount owed. For example, taking an SSL down from 80% B/L to 5% B/L has no impact on mix but can gain some profiles 30 points if that's the only open loan.
@Anonymous wrote:
Funny BBS, I just went back and checked for S&Gs...sit down, I had to triple-check this....still having a hard time....I had absolutely 0 point change from day A to day B when the only difference was no open installment loan...and revolving util was 1% different, but under 8.9%. I do have to say this....full amount was owed on loan, and PIF, so loan points were NOT optimized. So, it appears a Closed loan is equal to an open, unoptimized. With that said, I have 2 more I may be able to check, and I will try. Very interesting question BBS.
Did you have closed installment lines on the report?
Closed tradelines have always counted for credit mix AFAIK, but the open installment tradeline utilization is a separate metric for FICO 8 and any other algorithm that uses it to my knowledge for all that's gotten conflated here over time.
Actually if you do have a closed loan think we could say they're absolutely separate.
@Anonymous wrote:
Ok, I couldn't check the others, it was before I had paid service and scores....wish I had been as into it then as now, we could have had alot of DPs!!!...Anyway, I can't quantify no loan history vs. loan, but closed loan vs open, high balance, I have no point differences.
One concern. They may have updated the closed dates, ect...but I'm looking at Reports via EX CW. The report shows open one day, closed the next, no point change crazy enough! Is it because I never paid past any breakpoints? Someone help me understand!
What was current balance and original balance before you paid it off, and did you have any other open installment lines at the time?
Because installment ratios / utilization (for lack of a better term) have breakpoints.
The 8.9% one is well documented, the higher one is not. Working theory is 70% but we haven’t confirmed that (I am fixin’ to test that it is a ton of cash still) and depending where you were pre-refi would suggest whether you would have stayed the same or lost points with the loan closure.
The 8.9% one is well documented, the higher one is not. Working theory is 70% but we haven’t confirmed that (I am fixin’ to test that it is a ton of cash still) and depending where you were pre-refi would suggest whether you would have stayed the same or lost points with the loan closure.