FICO 08 installment loans

[Anonymous]

I was reading that installment loans will count more under FICO 08 than under the current system. I don't have any installment loans on my credit report. My credit union said they will loan me my own money for 3% if I wanted to do what they call a "credit builder loan". Would this actually help my score any. It seems kind of dumb. I loan myself $1000 for two years. The bank makes 3%. Would the new scoring system just look at whether someone has an installment loan or not, so you get points for having an installment loan even if it is for a very small monthly payment? I would do it if my score would go up 30 points, otherwise it seems kind of lame. If I looked at a report manually and saw that someone was borrowing $1000 and taking two years to pay it back I would think they were not a good credit risk, not that they were a better credit risk. I don't want to do anything that would make my credit look worse under a manual review.

[Anonymous]

Sparky,

Yes, this will help rebuild your credit..I'm currently doing this myself with my bank.  Can't say how much it helps but a lot of financial gurus recommend this as a method to help rebuild your credit.  If "your money" is drawing interest in a savings account or cd this should pretty much balance out with what the bank recieves as interest.  The whole idea is to build your payment history.

Woody

[cobra19]

sparky - I'm with you. This does sound lame. If you are doing this solely to appease FICO '08, don't hold your breath. A year ago, folks were saying the CRB's would begin implementing it in September. It never happened. Now, they say sometime in the Spring '08 -  maybe.

Looking to raise your score 30 points or so? I'd open a 3 or 4 new accounts and let them report.