Re: Installment tradeline utilization thread

CH-7-Mission-Accomplished · ‎02-15-2016

FICO likes to see a mortgage and a nonmortgage installment loan.

The installment can be an auto loan, share secured loan, student loan ... anything that's a nonmortgage installment.

JBjunior · ‎02-16-2016

I posted in the other thread too: FICO 08 is up 35 points on Ex to 825, Tu is at 842, and Eq is at 819. Only installment loan is the Alliant. I paid it down to $45 instantly and it reported properly.

Anonymous · ‎02-17-2016

@JBjunior wrote:
I posted in the other thread too: FICO 08 is up 35 points on Ex to 825, Tu is at 842, and Eq is at 819. Only installment loan is the Alliant. I paid it down to $45 instantly and it reported properly.

Nice. Strategy at work. I know no other way to reap +20 points on FICO score, assuming clean credit profile and no active installment loans. Congats!

Anonymous · ‎03-01-2016

My little installment loan just reported paid. I now have no open loans reporting.

Anonymous · ‎03-01-2016

Wow!!! 33 point reduction. Significant in my opinion.

Anonymous · ‎03-01-2016

@Anonymous wrote:
Wow!!! 33 point reduction. Significant in my opinion.

It was a little more than I expected, but it's okay. From a credit approval standpoint, there isn't a lot of difference between 804 and 771. I have another loan that's six month old that's supposed to start reporting soon. It'll be interesting to see what impact it has.

Revelate · ‎03-02-2016

@CH-7-Mission-Accomplished wrote:
FICO likes to see a mortgage and a nonmortgage installment loan.

The installment can be an auto loan, share secured loan, student loan ... anything that's a nonmortgage installment.

Hate to ask this, but what's your source on this?

I got the same score movements regardless of what the loan type was: share secured, auto, and mortgage in my case. All the same animal apparently from a scoring perspective.

CH-7-Mission-Accomplished · ‎03-02-2016

For one thing, a consistent reason given for not getting a higher score is "no recent nonmortgage installment loan activity."

Revelate · ‎03-02-2016

@CH-7-Mission-Accomplished wrote:
For one thing, a consistent reason given for not getting a higher score is "no recent nonmortgage installment loan activity."

Well to counter that, a consistent reason under FICO 8 / FICO 9 for not having a higher score is:

The remaining balance on your mortgage or non-mortgage installment loans is too high.

This has been a common theme from my reports when I've been at a high installment utilization ratio, and was there regardless of the loan type (share secured, auto, or now mortgage). I seriously haven't seen any difference, nor have others reported data suggesting a difference between the different types though haven't seen anything on student loans and that's not something I can or will test personally.

If I hadn't had pretty much identical score gains / drops throughout my testing I would be more of your opinion (and FWIW I had thought there might be a difference before my personal data pretty much ruled that out) but seeing how my scores reacted to my mortgage (which is all in this awkward thread), without data to the contrary I can't support your assertion.