Unfair / Credit Mix

[fishbjc]

Friend of a Friend doesn't have a mix of credit.  She's never owned an auto due to a hearing impairment.  She bought her little condo with cash before her area became *trendy*.  She's completely remodeled it and is sitting on a gold mine.  She paid $30k for it with $30k in remodel.  This condo is probably worth 400k now.

She's completely baffled about this mix of credit and feels discriminated against because she will never have an auto loan and that affects her score. 

Thoughts & Advice?????  I think it completely stinks.  She's incredibly responsible with a nice nest egg, just feels the credit score should be higher.

[llecs]

You can certainly get an 800 FICO without an open mortgage or car note. I have neither and the simulator says that I can hit solid-800s without them.

[Trishco]

I agree with illecs. The simulator says the same thing for me...well 805 anyways once I get that drastic utilization down.  

I've financed several vehicles, my home and the 5th wheel, none of them report.   I've always thought of it as a blessing in disguise.

[Lel]

When my wife and I applied for our mortgage a few years back, all she had reporting was a handful of credit cards and one paid-off auto loan.  Her score was 805 at the time, despite the fact that she didn't have that diverse of a credit mix.  My score was a little lower, and I had two paid off car loans and 4 student loans reporting.  So there's more to a high score than a mix of credit.

Incidentally, since adding a couple mortgages to our mix, our scores haven't really changed all that much. 

[RobertEG]

Credit mix is on only 10% of FICO score.

[Anonymous]

If she really feels that this is hurting her scores then she could certainly qualify for a personal loan. Perhaps join a credit union, deposit some money into savings, and then borrow against that.  

[haulingthescoreup]

Does she know about not allowing balances to post? If her reports are clean, that's probably what's hurting her.

If she pulls FICO's, ask her what the negative factors are, in order.