Fico Negative: You have no recent activity from a non-mortgage installment loan.

[happy0510]

Hmmm...this has never showed up on my report.  I already knew this from visiting these forumns but it was very interesting to actually see it in black & white from Fico.

1.     Your credit report shows no recent non-mortgage installment loans [?] (such as auto or student loans). This might be because you have no open installment loans, or because the lender has not recently reported information about this account. Having an installment loan, in combination with other credit accounts, demonstrates that you are able to manage a variety of credit types. What to do about this: Although the credit inquiry associated with opening an installment loan may lower your score in the short term, you might consider opening an installment loan. Opening and responsibly managing an installment loan will demonstrate your ability to handle different types of credit

[Anonymous]

This was the number one reason? What were the other negatives?

[jackg]

happy0510,

The FICO scoring segment called "Types of credit used" only accounts for 10% of points available to you, 55 points total. I can't tell you how much you might be losing out on but I would'nt worry about it. Debt is not a good thing! I would not go into debt because FICO saidit would help your score.

Was this for EQ ? I suspect it is because it's the score you updated, correct? It  looks like you lost 9 pts. but you don't know if it's directly attributable to installment credit, or do you?

[manyquestions]

I would't take out a loan to raise my FICO score 10 points.  Hopefully this is not a big factor in the new FICO calculations compared to the past versions of FICO.  I read somewhere online that they were going to make it count more with the new version of FICO but the mix factor has always been there.

[Anonymous]

---

@happy0510 wrote:

Hmmm...this has never showed up on my report.  I already knew this from visiting these forumns but it was very interesting to actually see it in black & white from Fico.

1.     Your credit report shows no recent non-mortgage installment loans [?] (such as auto or student loans). This might be because you have no open installment loans, or because the lender has not recently reported information about this account. Having an installment loan, in combination with other credit accounts, demonstrates that you are able to manage a variety of credit types. What to do about this: Although the credit inquiry associated with opening an installment loan may lower your score in the short term, you might consider opening an installment loan. Opening and responsibly managing an installment loan will demonstrate your ability to handle different types of credit

---

Hi happy - where did you pull this from? 

[happy0510]

To answer all your questions/comments....

My other negatives are:

-Public Record/Delinquency (PR 2005)

-Heavy use of available Credit (80%) Paid off!! Fico Sim. says I should reach 699-720

-Short History (AAoA 5yrs)

Regarding Opening an installment Loan:

I only have 1 CC and that is also my only TL period.  I want to buy a house through FHA within the next year or so and FHA requires 3 open TL's.  I need the credit.  I am gonna go to my local CU and apply for an installment loan once my CC reports my new lower balance.

[happy0510]

Hi Beam,

Here at myfico. It is my EQ Report.

[Anonymous]

A Macy's store card would work well for you if you need a nice, low maintenance open revolving TL that will have some growth potential.

[Anonymous]

Wow!  DH has no non-mortgage installments and this hasn't shown up for him before.  It'll be interesting to see when I pull his report again - darn it all! 

[happy0510]

Credit,

Stupid me. I just applied for a C1 card in june impulsively when my util was still too high.  They mentioned it in the denial letter along with my other negatives above.  I still believe it was my util

I LOVE Macy's.  But I am scared of a denial!

Beam,

I never seen this before and I haven't had an installment loan forever.  I've been pulling from fico since 06 and registered in 07.