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Installment Loan?


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About how long does it take for an installment loan to show impact on your credit score? I've had an auto loan for 4 months, and my score took a slight dip because of the new account.

Another question, what is a good mix of all types of credit to have? I'm not looking to mortgage anytime this decade.

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  • 2 weeks later...

How long does it take for "history" to have an impact on history???

It takes a long time.

The best way to get the most impact is to pay it completely off and not pay it off early. These scores are based on the continual input of data so you need lots of data put in so that you start getting a good firm score.

You need to have several installments paid off before they begin to have substantial impacts on your score.

As for a mortgage, you are screwed until you get one.

I remember that TU used to always list that as the top factor to improve my score (when my negatives got removed). I had lived in apartment for a long time and had no intention in getting a house.

Now I am married and have some mortgage history. Ironically, it does help but not as big as an impact because the credit mix category isn't very large when it comes to points...

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