Good question. I'm not sure if getting a loan like that would have better impact or not. I'm curious on the answer to this. Not something I really thought about.before.
@Thomas_Thumb wrote:
@Anonymous wrote:Recently applied for a CLI on a CU credit card. Asked what model they used for this decision, and told it was FICO Auto Score 8.. The number they pulled was 35 points lower than the FICO8 I get from CCT. Not sure why they would choice this model for credit cards. CU's are hard to figure sometimes.
Didn't get as much of an increase as I'd hoped, but did gain some valuable information-at least I know where I stand now on this important score which can't be bought by the consumer! Gives heavy emphasis (as would be expected) on auto loan repayments. My last auto load was paid off 15 years ago, and I've had no other installment loans.
So my question is would a savings secured installment loan have a meaningful positive impact on this score, or would it have to be some sort of auto related loan -maybe a CU or bank personal loan backed by my current auto title.. My research so far has produced mixed information on this.
I've been on the fence for awhile on whether or not to get a savings secured loan. This auto score is the most important one for me right now, as I'm thinking about financing a vehicle in the near future, and need to get this score up as fast and as far as possible.
Classic Fico 08, Auto Fico 08 and Bankcard Fico 08 all are derived from the Fico 08 model. The industry enhanced versions bring additional factors into the equation.
It is well known that the Classic Fico 08 algorithm like to see an open installment loan on file with a low balance to loan ratio (9% or less for optimal impact). Reported benefit is in the 25 to 35 point range. The Fico 08 Classic score benefit should carryover to the enhanced Fico 08 algorithms - and No it does not need to be an Auto loan to get the benefit on Fico 08 Auto. (SJ or CAPTOOL should be able to verify influence of an open loan on the industry enhanced versions)
BTW - You can purchase Fico 08 Auto scores - they are available thru myFICO. They come as part of a 3B package that now includes Fico 09 & Fico 08 [Classic, Auto and Bankcard scores] and the older Fico Mortgage scores. I think there may be a 1B package as well but, I have only purchased the 3B version.
I can verify that in my credit profile the presence of small share secured loan paid down to 9% seems to be worth about 25 points to my FICO 8 score.
I'm about to learn what happens when an auto loan reports, and will probably be able to assess to some extent what effect it has on the industry enhanced versions.
Yes you can get a 1-bureau report or a 3-bureau report; each gives you 9 or 10 FICO versions.
@Anonymous wrote:Well that settles it-I'm going to get the share secured loan. I've been a member of Alliant for awhile, and have the money already in the account. I'll report back with the results.
Well you have to let it play out over 2 months. First let it report at nearly the full amount. Then on the next cycle let it report at 9%.
And any time you need to find out what your FICO Auto 8 score is you can buy the report on this site. If you have the monitoring packaging you would get a 3B report once every 3 months