@Anonymous wrote:
I was recently approved for a discover it card and it came with a free monthly fico score service.
On there it shows my score and says : Your FICO® Credit Score is affected by the Key Factor(s) below:
LACK OF RECENT INSTALLMENT LOAN INFORMATION:
There is either no recent activity or insufficient information abour your installment loans. Having a loan along with other types of credit demonstrates that you are able to manage a variety of credit types.
So what exactly does this mean? My score is in my sig and this is the only thing that says is affecting my score.
Does this indicate that I need to take out some sort of loan for my score to be higher?
Weird?!?!?!?!
Hi there.
Part of scoring is credit mix which means FICO likes to see a variety of different kinds of credit such as revolving accounts, car loans, mortgages, etc. The newer FICO 08 scoring model, such as is offered by Discover, seems to be more sensitive to the lack of installment loans in a profile.
But credit mix is only 10% of the scoring formula and IMO it's not worth taking out a loan just to show more diversity.
As your scores indicate you can do just fine without any installment loans.
