That is a good question. I thought I read on here that one open installment was okay, but maybe somehow having 2 gives you the max scoring in this category of Fico. Maybe someone with better knowledge will chime in.
@Anonymous wrote:So my auto loan is over next month in May, and I want to avoid the credit score drop that results from ending an installment loan.
I do have a personal one year $1K loan that I randomly took out in Dec 2015 still active (from my credit union, SchoolsFirst FCU). Is that enough to keep my score from dropping, or should I get another personal loan since I have two at the moment?
I was thinking of getting a consolidation loan, any recommendations?
Thanks in advanced!
I think that loan is fine. When you get near the end of the year you might want to add a share secured loan or something. But for the next 6 or 7 months you're good.
It's all aggregate percentages when it comes to installment utilization. Credit mix for installment loans is next to non-existent on the FICO 8 algorithm, or it counts closed installment loans the same as in prior models.
In any event after your current loan reports paid / closed, it no longer factors; if you get a material change in your installment utilization without this loan's being open, (north of 10% aggregate, or north of call it 80% aggregate) you will see a drop.
