@Revelate wrote:
@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:Well I'm an open minded person.
I think I'm going to give this a try... open a savings account with local credit union... take out a share loan.
And see what happens to my score.
I'm a perfect test case because I have only revolving credit.
Sorry I haven't been on much.
Will do you one better, you may want to do this with Alliant as it's known stone cold to work, but read through my installment utilization thread: take the $500 loan, and pay $460 of it right back... if you want to test things and see how FICO reacts, move down 10% on each payment after it reports and see if you can tease out the additional breakpoints.
Think there's one at 80%, and we're guessing at this point there's another at 20%, but I and jamie both have gotten points as we've paid down, and I got seriously non-trivial ones (I gained 25+ points per bureau and I have extensive closed installment history already so more than just mix of credit which). Admittedly my shared secured loans are over a year at this point so they may not count as "new" but we don't have good data on that yet as far as FICO 8 goes... also this does help EX 98 too which is part of the mortgage trifecta, and any installment history on your report should help EQ/TU 04 too if you just have revolving though those haven't reacted to my installment utilization testing.
OK Revelate.
I'm ready to test your reindeer game.
I'm joining Alliant and will soon have the savings account in place.
Now which type of loan should I use, or should I use one of each: "Savings Secured" or "Savings Secured Term"?
Then I pay off 80% and pay the rest off slowly?
Thanks
Savings Secured, for teh full 5 year term.
If you want definite goodness just go with the 90% paydown though I'd be curious if someone tested call it 29% then 19% respectively if they were so inclined. We know there's a breakpoint somewere north of 60% and one user reported 80%, and it looks as though based on some of my old data that 16% is good therefore presumably there's another line at either 20 or 30%.
After that schedule a dollar payment every six months or whatever so that your account doesn't get flagged for inactivity. Would also like to see someone with no installment history let it report normally for the first month to see what if any mix of credit did for one's profile when it reported. Lot of data still to be done for FICO 8.
Thanks, Revelate.
Will give it a try.
Will report back in the event I can discern impact on FICO scores.
OK Revelate.
I joined Alliant, set up savings, & took out small Savings Secured loan for $500.
I figured I'd start out with a 12-month loan, just to get the feel of things.
(So far it seems like a very user-friendly organization for those of us who like to do things online. I may well use this bank for regular banking as well.)
So now the idea is to pay it off ahead of schedule, but not down to zero?
@SouthJamaica wrote:OK Revelate.
I joined Alliant, set up savings, & took out small Savings Secured loan for $500.
I figured I'd start out with a 12-month loan, just to get the feel of things.
(So far it seems like a very user-friendly organization for those of us who like to do things online. I may well use this bank for regular banking as well.)
So now the idea is to pay it off ahead of schedule, but not down to zero?
Yes, though should've done the 5 year term, promise you it's in all ways better 
.
If you don't mind letting it report before making the large payment I'd appreciate it from a data point perspective, so hard to get anyone who tracks FICO scores to not have an installment line somewhere on their report already, and I believe you have swabo installment history?
Would be nice to seperate mix of credit from installment utilization under a FICO 8 model.
@Revelate wrote:
@SouthJamaica wrote:OK Revelate.
I joined Alliant, set up savings, & took out small Savings Secured loan for $500.
I figured I'd start out with a 12-month loan, just to get the feel of things.
(So far it seems like a very user-friendly organization for those of us who like to do things online. I may well use this bank for regular banking as well.)
So now the idea is to pay it off ahead of schedule, but not down to zero?
Yes, though should've done the 5 year term, promise you it's in all ways better
If you don't mind letting it report before making the large payment I'd appreciate it from a data point perspective, so hard to get anyone who tracks FICO scores to not have an installment line somewhere on their report already, and I believe you have swabo installment history?
Would be nice to seperate mix of credit from installment utilization under a FICO 8 model.
Oh I don't mind letting it report at whatever you suggest... I want to learn too. I already made a 10% payment , so the balance is 90%. So I should let it sit that way for a month and see what happens?
Yes I have exactly zero instalment loans on my reports. 1 of the 3 reporting agencies was reporting an old positive car loan from 1999, but that just came off this month. So I have ONLY revolving accounts.
Unfortunately I may not wind up being the great test case for a different reason, though. My capacity utilization on the credit cards has been generally sub 1%, actually pretty close to zero, each month. This month it's going to go up a little due to a variety of circumstances, probably to from 3 to 5%. So I hope that doesn't blur things.
It might not, since I did do that experiment, going from .3% to 3.9%, and then back down to .3%, a month or so ago, and my scores didn't blink at either the move up or the move down.
@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:OK Revelate.
I joined Alliant, set up savings, & took out small Savings Secured loan for $500.
I figured I'd start out with a 12-month loan, just to get the feel of things.
(So far it seems like a very user-friendly organization for those of us who like to do things online. I may well use this bank for regular banking as well.)
So now the idea is to pay it off ahead of schedule, but not down to zero?
Yes, though should've done the 5 year term, promise you it's in all ways better
If you don't mind letting it report before making the large payment I'd appreciate it from a data point perspective, so hard to get anyone who tracks FICO scores to not have an installment line somewhere on their report already, and I believe you have swabo installment history?
Would be nice to seperate mix of credit from installment utilization under a FICO 8 model.
Oh I don't mind letting it report at whatever you suggest... I want to learn too. I already made a 10% payment
Yes I have exactly zero instalment loans on my reports. 1 of the 3 reporting agencies was reporting an old positive car loan from 1999, but that just came off this month. So I have ONLY revolving accounts.
Unfortunately I may not wind up being the great test case for a different reason, though. My capacity utilization on the credit cards has been generally sub 1%, actually pretty close to zero, each month. This month it's going to go up a little due to a variety of circumstances, probably to from 3 to 5%. So I hope that doesn't blur things.
It might not, since I did do that experiment, going from .3% to 3.9%, and then back down to .3%, a month or so ago, and my scores didn't blink at either the move up or the move down.
Yeah just let it sit if you wouldn't mind; we think there's a line at 80%, and maybe one at 20%. If you want to be uber helpful, let that report, then pay to 79% and see if you get a bump (should be noticible, even mine was 5-6 points) after that go to call it 29% then 19% then 9% and see where you get an expected big bump.
3-5% should be irrelevant from my own testing as well: it's all in number of tradelines reporting a balance when we're talking minimal utilization in my experience; where this does get blurry is it's a brand spanking new installment line, whereas when I was doing testing they'd already been opened for more than a year; however, I don't think it'll matter as when I did the double dog downward with my old installment lines closing, I got nearly an identical drop when the current installment lines were still pretty darned new (less than 6 months) as I got gains recently so I think this might not be much of a factor.
I seriously appreciate your being willing to do this!
@Revelate wrote:
@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:OK Revelate.
I joined Alliant, set up savings, & took out small Savings Secured loan for $500.
I figured I'd start out with a 12-month loan, just to get the feel of things.
(So far it seems like a very user-friendly organization for those of us who like to do things online. I may well use this bank for regular banking as well.)
So now the idea is to pay it off ahead of schedule, but not down to zero?
Yes, though should've done the 5 year term, promise you it's in all ways better
If you don't mind letting it report before making the large payment I'd appreciate it from a data point perspective, so hard to get anyone who tracks FICO scores to not have an installment line somewhere on their report already, and I believe you have swabo installment history?
Would be nice to seperate mix of credit from installment utilization under a FICO 8 model.
Oh I don't mind letting it report at whatever you suggest... I want to learn too. I already made a 10% payment
Yes I have exactly zero instalment loans on my reports. 1 of the 3 reporting agencies was reporting an old positive car loan from 1999, but that just came off this month. So I have ONLY revolving accounts.
Unfortunately I may not wind up being the great test case for a different reason, though. My capacity utilization on the credit cards has been generally sub 1%, actually pretty close to zero, each month. This month it's going to go up a little due to a variety of circumstances, probably to from 3 to 5%. So I hope that doesn't blur things.
It might not, since I did do that experiment, going from .3% to 3.9%, and then back down to .3%, a month or so ago, and my scores didn't blink at either the move up or the move down.
Yeah just let it sit if you wouldn't mind; we think there's a line at 80%, and maybe one at 20%. If you want to be uber helpful, let that report, then pay to 79% and see if you get a bump (should be noticible, even mine was 5-6 points) after that go to call it 29% then 19% then 9% and see where you get an expected big bump.
3-5% should be irrelevant from my own testing as well: it's all in number of tradelines reporting a balance when we're talking minimal utilization in my experience; where this does get blurry is it's a brand spanking new installment line, whereas when I was doing testing they'd already been opened for more than a year; however, I don't think it'll matter as when I did the double dog downward with my old installment lines closing, I got nearly an identical drop when the current installment lines were still pretty darned new (less than 6 months) as I got gains recently so I think this might not be much of a factor.
I seriously appreciate your being willing to do this!
OK so that's what I'm going to do.
I'm going to keep my hands off it now for a month and let it report at 90% and see what that does.
Then I'll pay it down to 79% and let that report
Then I'll pay it down to 29% and see what that does.
Then 19
Then 9
And I'll let you know what happens, if anything (I'm kind of jaded... my scores never seem to move much)
BTW it's possible I may not be able to micromanage it so perfectly, because they insisted on a monthly automatic electronic debit payment, but I'll try.
@SouthJamaica wrote:BTW it's possible I may not be able to micromanage it so perfectly, because they insisted on a monthly automatic electronic debit payment, but I'll try.
Whether it's 19 or 18% really doesn't matter Make your additional payment to get it to the 19 and then if it takes out another payment, no biggy. I'd cancel that automatic payment thing though soon as you can, as you're going to have a seriously short tradeline without it.
@Revelate wrote:
@SouthJamaica wrote:BTW it's possible I may not be able to micromanage it so perfectly, because they insisted on a monthly automatic electronic debit payment, but I'll try.
Whether it's 19 or 18% really doesn't matter
It was mandatory. They said because of the interest rate.
