I'm A Credit Virgin And I Want It To Be Special

[pdxuser]

Cheapskate and ByrdMan, my original plan was to just have one or two lines, because I heard you could get a good FICO score quickly that way, and because I didn't want to deal with multiple accounts, but my goal is a mortgage, and I've been told repeatedly that one or two lines is considered a thin history, and that a mortgage officer would want to see more well-managed accounts than that. It makes a certain logic, I suppose, but it does seem like the cautious consumer who just uses one card and always PIFs would be a more responsible person to lend to.

Am I right in being concerned about a thin file? 

[Junejer]

Pdx, I am not trying to change your mind. My history was almost 19 years and my AAoA was over 6 yrs at the time. My scores tanked, because I took advantage of the 790 and apped for a lot more credit. I am done other than getting mortgages. I don't need more credit. I now have 9 revolving lines. My scores will recover fine when my util gets back down and my AAoA increases.

[Anonymous]

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@pdxuser wrote:

ilovepizza, why do you lean toward two installs as optimal?

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I see many people gain more points by adding a second type of installment. Optimal? Not sure. It might have to do with just how many months you add up combined or the type of installments them selves, or just having them. I understand what works but not sure exactly why things are gaining points just that when they are done it has a positive effect. I usually do multiple actions at the same time so at first I'm not sure what part raised scores. Example. I would add another installmet, at the same time make sure the installment was also different. Was it the different installment or just adding another that raised the scores. Not sure, so try to do as much differently as possible. If you cover all bases the second one will be beneficial. Usually more doesn't have a negative affect in the long run so I like to fill things until they stop gaining points then I move to another area. If something can't hurt then its worth a try. Right now with 0 avg age you can't damage that at all. Nothing to loose from 2 vs 1.

Just PIF the extra installment before applying for the mortgage. It's more than just a score to. The more you have the thicker your file can look under a manual review.

I feel very strongly that 2 will be better than 1 if not in the first 2 years but more so after that. The fresh start in the newbie bucket seems to me to be mostly about payment history and UTL not so much variety I believe. But when you switch buckets those installments should count more if not counted in the fresh start bucket.

Try to make things as different as possible. Like auto loan and secured loan, ect.. Also choosing the right kind of loan is very important. They can raise your score, not affect it or lower it.

Message Edited by ilovepizza on 10-27-2008 01:34 PM

[Anonymous]

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@pdxuser wrote:

Cheapskate and ByrdMan, my original plan was to just have one or two lines, because I heard you could get a good FICO score quickly that way, and because I didn't want to deal with multiple accounts, but my goal is a mortgage, and I've been told repeatedly that one or two lines is considered a thin history, and that a mortgage officer would want to see more well-managed accounts than that. It makes a certain logic, I suppose, but it does seem like the cautious consumer who just uses one card and always PIFs would be a more responsible person to lend to.

Am I right in being concerned about a thin file? 

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I can't say for truth about FICO scoring and having extra different types of loans. However, your logic about having a variety would make sense for asking for a mortgage.

[pdxuser]

ilovepizza, what different types of installment loans are we talking? I thought they were all treated the same, except for consumer financing, which was always bad.

[Anonymous]

Auto, Mortgage, Secured, Unsecured, personal, Deposit, CFL, Consolidation, Cash, Secured LOC, HELOC, unsecured LOC, Marine, Student, DMP, ... Probably more, just can't think of them.

Secured, Auto, Mortgage, Personal, Marine, Student, LOCs don't seen to hurt.

   - however LOC can also be reported as revolving and not always counted as installment. 

I think Deposit is neutral having no score affect up or down with PIF (not sure yet, could be pos)

DMP, CFL, Cash usually CFL too, Consolidation are some of the negative ones. 

I'm still trying to figure out codes and titles. 

[pdxuser]

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@Anonymous wrote:

Auto, Mortgage, Secured, Unsecured, personal, Deposit, CFL, Consolidation, Cash, Secured LOC, HELOC, unsecured LOC, Marine, Student, DMP, ... Probably more, just can't think of them.

Secured, Auto, Mortgage, Personal, Marine, Student, LOCs don't seen to hurt.

   - however LOC can also be reported as revolving and not always counted as installment. 

I think Deposit is neutral having no score affect up or down with PIF (not sure yet, could be pos)

DMP, CFL, Cash usually CFL too, Consolidation are some of the negative ones. 

I'm still trying to figure out codes and titles. 

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Do you think all those different types are each considered as a distinct type of loan for FICO credit mix purposes? I get that mortgages are different, consumer financing is different, and many lines of credit (and even consumer finance loans) are reported as revolving. But is a savings-secured loan treated differently than a signature loan? Because I've never heard of a secured or unsecured CC being treated differently.... Also, is a title-secured loan different than a savings-secured loan?

[Anonymous]

My guess is that they are all grouped together as the same.

I have seen a "deposit" title on someones CR and it looked as if there was no score change from it. Then they did a personal loan and gained points. This might be something or not? Maybe something else was affecting the score at the same time. I need to see more CRs with that title to compare. I don't have this answer right now.

But it seems clear that Auto title is different in another model of FICO. I would say that would be pretty different. Is Auto counted differently for Mortgage FICO, not sure. I try to cover all bases just in case.

Message Edited by ilovepizza on 10-29-2008 03:04 AM

[pdxuser]

I'm not even sure what a deposit loan is. Is that just another term for a savings- or certificate-secured loan? I mean, lots of loans require a deposit.

I can't really think of another type of loan that would make sense for me. I'm not going to buy a car, and I don't have the credit to get an unsecured loan. 

[marty56]

If I had it to do all over again, I would have made it as a three-way.  Store card, Gas card and a Visa/MC card.

Also as in other first time situations, dont say that you thought it would have been bigger when refering to your CL.  CCs do have feelings too.