@Ubuntu wrote:
@mitchblue wrote:
I'm curious does a secured loan/personal loan count less than say a auto loan or mortgage? Thanks.
Possibly but it will depend on what you're applying for. Certain industries have separate scoring systems that apply specifically to their industry. Auto lenders value previous auto loans and leases very highly when reviewing your report. Mortgage lenders also give great weight to those who have or have had a mortgage. These factors are more likely to affect lenders decision's than they will affect your FICO score.
The affect of a new loan can vary quite a bit depending on the age, thickness, and specific content of your report.
In general a mortgage loan is probably the single most positive item for a credit report because it displays your ability to obtain and manage a large loan over a long period.
That said any car or personal loan is definitley a benefit to your score. I don't know whether there is any difference between a secured and unsecured personal loan. There shouldn't be one, or much of one, because auto and mortgage loans are also technically secured loans but someone else may have better information on that.
One other thing to note just for the record is that many people who have auto or other installment loans tend to see their scores drop when the loans are paid off even though the loans still appear on your report. I would guess that has something to do wth statistics but can't be certain of that.
Thank you very much. Very helpful.
FICO® 8 Scores 821 FICO® 9 Equifax 826 (Updated 02-7-23)
