So, one of the "negaitve" things in my scoring models is "You have no recent activity from a non-mortgage installment loan". So I figured fine, I will go get a small balance loan and take that out of the equation. I let a INQ hit TU and had no problem getting a $5k installment loan.
The first thing back after a score drop alert "The remaining balance on your mortgage or non-mortgage installment loans is too high" followed by a score drop in EQ of 61 points with TU going up 10 and EX going up 6. I know non-installment factors in to something like 10% of the overall score, honestly I was just trying to round out the CR's a little bit.
It just seems like you can't win with some of this. The logic as I followed it was you would take an intial hit from the INQ and the new account, but the long term effects would far outweigh it. So, the question is would keeping the loan and paying it down eventually take back the hit and come out better in the end, or should I just go pay it off as it is not what I expected? Furthermore, would paying it off that fast have any real positive affect as far as final outcome on the score?
TIA,
AdCred1
