Question about number of open installment loans

[wednesdayaddamsd]

I have about 14 loans I am currently consolidating. On the myfico score simulator (not the one for paying customers, the "generic" one) it gives me a 30 point score boost for going from 14 installment loans to 1.

I know everyone says that installment loans don't matter, but the score simulator does ask how many open loans you have, and how much of your total debt is credit card debt, so despite all of the board postings to the contrary, it seems that this does matter.

Does anyone have any insight into this phenomenon of number of open loans? If it matters, my installment loans are all student.

Thanks!

[llecs]

My 2 cents is that adding a loan won't give you 30, but instead, going from 14 TLs with a balance to 1 (plus any of your other balances like CCs, mortgage, car, etc.) will result in a nice gain. I see that happening. You aren't improving your mix. Installment util is virtually ignored. But having more TLs with a $0 balance is a big deal. I think the new loan will cancel out most, if not all, of your gain, but that's in the short-term. As it ages and hits 6-12 months old, then the new credit ding will have worn off and you'd see a decent gain (and hopefully lower payment).

[wednesdayaddamsd]

Thank you, Llecs. I appreicate your input. I'll follow up when the loans close and let everyone know what happens! ;O)