List! Hello everyone! I am interested in increasing my score, as we all are! : ) And so, any feedback on this situation would be great! I have recently been approved to get a car loan for a car I found (sticker price of $12,000), but in terms of increasing my score, how much benefit would it have if I did get that loan and paid on it for a couple years? Would it help that much more than just getting a credit card, or even nothing at all. I know that they do not influence your crcd utilization % (that they are an installment loan), but I was wondering if it would make a difference. Not on the same scale as a mortgage, but a little less. Or I could just not get anything, and let time raise my score. I do have credit cards, but would getting this other kind of credit help my score? I finish graduate school in a couple of years and was just hoping to raise my score as much as possible. Thanks for any input! and sorry for being so redundant in my thoughts! Charles Meyers
One thing to be said for installment loans - especially a car loan - is that it gives you a mix of credit. Creditors (and FICO) like to see a mix of credit. And when it comes time to purchase a new car once this one is paid off (or if you do a trade), you're in a much better negotiating position.
Thanks for your reply. I guess, regardless or not if it makes a big difference in my score now, is the fact that latter on it will help me with either auto or mortgage loans in the future.
