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Do closed accounts help credit mix at all?

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Valued Contributor

Do closed accounts help credit mix at all?

I know that credit mix is only about 10% of scoring, however I am wondering if it has been determined if closed accounts help credit mix at all?  As an example, I have two mortgage accounts and two auto loans on my reports, however they are all closed.  I am just wondering if I get ANY credit at all as far as the mix is concerned, or would this basically be like they do not exist at all?

 

Thanks for any thoughts!  

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Sept 2020: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $19.5K; Cap1 Plat $8.4K; Barclay $7K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $277K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 1 of 17
16 REPLIES 16
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Moderator

Re: Do closed accounts help credit mix at all?

Oh my, good question, have not seen this question on this in forums before personally. I tend to think no. you have to have one open to get the benes, Fico does decrease when last installment loan closes. Also we know without an open CC your Fico is also lower.

Message 2 of 17
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Valued Contributor

Re: Do closed accounts help credit mix at all?

Thank you, gdale.  I was pretty sure that there is no credit (pun kinda intended) for closed accounts, but wasn't sure.  I'd love to snag a few more points for better credit mix, but don't want to take out a loan, and related HP, to do it!  Smiley Happy

Thanks again! 

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Sept 2020: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $19.5K; Cap1 Plat $8.4K; Barclay $7K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $277K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 3 of 17
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Senior Contributor

Re: Do closed accounts help credit mix at all?

Closed mortgages that are on file do help with credit mix even though an open mortgage provides added upward potential on score once balance is paid down. Not sure if car loans add additional "credit mix" bonus points if you have mortgages on file. My guess is yes for Fico 04 and VS 3.0 but perhaps not with Fico 08. However, I have never had a car loan on file - just mortgages.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 4 of 17
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Valued Contributor

Re: Do closed accounts help credit mix at all?


@Thomas_Thumb wrote:

Closed mortgages that are on file do help with credit mix even though an open mortgage provides added upward potential on score once balance is paid down. Not sure if car loans add additional "credit mix" bonus points if you have mortgages on file. My guess is yes for Fico 04 and VS 3.0 but perhaps not with Fico 08. However, I have never had a car loan on file - just mortgages.


I'm just curious whereby you come by the information that any closed loans help with credit mix.  I'm not disagreeing with you, but I have been searching for two years to find this answer and come up empty.

 

 

FICO 8: EX-775, EQ-776, TU-770 - [10/9/2020]
FICO 9: EX-804, EQ-843, TU-830 (10/9/2020)
Mortgage: EX-725, EQ-724, TU-744 - [10/9/2020]
NFCU NavChk 15K | NFCU Visa 50K | CapOne Venture Visa 50K | Barclay Aviator MC 12.5K | Discover It 37K | Alliant Visa 25K | BECU CLOC 10K | BofA AK Air Visa 5K |Amazon Prime 10K.
214.5K Total Revolving.
Alliant Auto Loan 2.5K/31K
BK 7 Filed 8/23/2013 - Discharged 11/27/2013.
Message 5 of 17
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Valued Contributor

Re: Do closed accounts help credit mix at all?


@Thomas_Thumb wrote:

Closed mortgages that are on file do help with credit mix even though an open mortgage provides added upward potential on score once balance is paid down. Not sure if car loans add additional "credit mix" bonus points if you have mortgages on file. My guess is yes for Fico 04 and VS 3.0 but perhaps not with Fico 08. However, I have never had a car loan on file - just mortgages.


I hope you are correct!  I know there are a lot of things about FICO scoring that we may not understand or does not seem fair, however it sure seems like closed installment or mortgage accounts, especially those that have a completely positive history, would give us at least some benefit.  It would make sense that these accounts would carry a bit more weight than perhaps profiles that have no history at all in these areas - but then again, it's FICO!  Smiley Happy

 

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Sept 2020: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $19.5K; Cap1 Plat $8.4K; Barclay $7K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $277K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 6 of 17
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Valued Contributor

Re: Do closed accounts help credit mix at all?


@EW800 wrote:

@Thomas_Thumb wrote:

Closed mortgages that are on file do help with credit mix even though an open mortgage provides added upward potential on score once balance is paid down. Not sure if car loans add additional "credit mix" bonus points if you have mortgages on file. My guess is yes for Fico 04 and VS 3.0 but perhaps not with Fico 08. However, I have never had a car loan on file - just mortgages.


I hope you are correct!  I know there are a lot of things about FICO scoring that we may not understand or does not seem fair, however it sure seems like closed installment or mortgage accounts, especially those that have a completely positive history, would give us at least some benefit.  It would make sense that these accounts would carry a bit more weight than perhaps profiles that have no history at all in these areas - but then again, it's FICO!  Smiley Happy

 

 


One area where closed installment loans clearly matter is in auto enhanced scores.  If your past auto accounts were handled great but problems with credit cards your auto enhanced score will be higher.  And the opposite would be true.  So that one is clear.

 

It seems internally inconsistent that FICO would only give you score points for credit mix for open credit cards, and like to see three or more, but doesn't count closed credit cards for mix, and then would count closed installment and mortgage loans?  It is not logical, though that doesn't mean it's not true.

FICO 8: EX-775, EQ-776, TU-770 - [10/9/2020]
FICO 9: EX-804, EQ-843, TU-830 (10/9/2020)
Mortgage: EX-725, EQ-724, TU-744 - [10/9/2020]
NFCU NavChk 15K | NFCU Visa 50K | CapOne Venture Visa 50K | Barclay Aviator MC 12.5K | Discover It 37K | Alliant Visa 25K | BECU CLOC 10K | BofA AK Air Visa 5K |Amazon Prime 10K.
214.5K Total Revolving.
Alliant Auto Loan 2.5K/31K
BK 7 Filed 8/23/2013 - Discharged 11/27/2013.
Message 7 of 17
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Senior Contributor

Re: Do closed accounts help credit mix at all?

Your Credit Score 4th edition by Liz Weston on page 23 states:

 

"The company [Fair Isaac] does say that that you don't need to have a loan of each possible type - credit card, mortgage, auto loan and so on - to have a good credit score"

 

She then goes o to state:

 

"To get the highest possible scores, however, you need to have both revolving debts like credit cards and installment debts like an auto loan, mortgage or personal loan. These latter loans don't have to still be open to influence your score. But they do still need to show up on your credit report."

 

I have read from other sources as well that closed accounts do count toward mix relative to score card assignment. That does NOT mean a closed account provides the same upward score potential.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 8 of 17
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Valued Contributor

Re: Do closed accounts help credit mix at all?


@CH-7-Rebuilding wrote:

@EW800 wrote:

@Thomas_Thumb wrote:

Closed mortgages that are on file do help with credit mix even though an open mortgage provides added upward potential on score once balance is paid down. Not sure if car loans add additional "credit mix" bonus points if you have mortgages on file. My guess is yes for Fico 04 and VS 3.0 but perhaps not with Fico 08. However, I have never had a car loan on file - just mortgages.


I hope you are correct!  I know there are a lot of things about FICO scoring that we may not understand or does not seem fair, however it sure seems like closed installment or mortgage accounts, especially those that have a completely positive history, would give us at least some benefit.  It would make sense that these accounts would carry a bit more weight than perhaps profiles that have no history at all in these areas - but then again, it's FICO!  Smiley Happy

 

 


One area where closed installment loans clearly matter is in auto enhanced scores.  If your past auto accounts were handled great but problems with credit cards your auto enhanced score will be higher.  And the opposite would be true.  So that one is clear.

 

It seems internally inconsistent that FICO would only give you score points for credit mix for open credit cards, and like to see three or more, but doesn't count closed credit cards for mix, and then would count closed installment and mortgage loans?  It is not logical, though that doesn't mean it's not true.


That is a very good point, that I had not thought about.  My auto-enhanced scores are all in the 760 to 765 range, so it seems like my completely positive history in auto loans is being taken into consideration.  It makes sense that an auto-enhanced score would take into consideration all such accounts - open or closed.  

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Sept 2020: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $19.5K; Cap1 Plat $8.4K; Barclay $7K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $277K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 9 of 17
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Moderator Emeritus

Re: Do closed accounts help credit mix at all?

One can call it either way with FICO 8 unfortunately.

 

Closed accounts absolutely do count mix of credit FICO 04; seen that in my own data.

 

The problem is FICO 8 confused the hell out of it because it wants open accounts and it also counts utilization metrics (revolving and installment both have calculations associated with them).

 

End of the day if you want to maximize one's score, you need to have both types of accounts open, and want them reporting pretty balances.  Unfortunately on the installment side if you have non-trivial obligations like a mortgage, that may be impossible to do other than letting time take it's course.  4 years from now on my 15 year mortgage I might see 6-10 points, oh yay.

 




        
Message 10 of 17
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