Credit Score + Used Auto Loans

[ChaimMoskowitz]

Very interesting stuff here. Thanks Mendelssohn and CM for discussing it.

Many look at the FICO pie chart as 100% gospel. There is a lot more to your credit score than that. While I don't have most of the answers I do know the questions to ask. 

[benjie1305]

Is " few cards reporting a balance" associated with a number or % of total cards?

[Mendelssohn]

Is there any way to know what bucket one is in our if one has moved?

Only someone who knows enough about FICO scoring and can isolate all of the different variables can really make an educated guess when they are rebucketed.

[Mendelssohn]

Is " few cards reporting a balance" associated with a number or % of total cards?

It is a percentage of cards, but ideally you want only a single card to report a balance as low as possible.  1 card at $2 ($3 for Discover) is the tested method to get a low limit to actually report and not get credited to $0. 

[benjie1305]

It is a percentage of cards, but ideally you want only a single card to report a balance as low as possible.  1 card at $2 ($3 for Discover) is the tested method to get a low limit to actually report and not get credited to $0.

Correct. One thing I often wonder is what statement period to consider. So many cards closing on different dates even within the same cc provider.

[ChaimMoskowitz]

Correct. One thing I often wonder is what statement period to consider. So many cards closing on different dates even within the same cc provider.

Just have the same card report and all others report with zero balance.

[Mendelssohn]

Correct. One thing I often wonder is what statement period to consider. So many cards closing on different dates even within the same cc provider.

That's why it's important to know when all of your cards report.  My DCU Visa statement closes on the 20th of the month but reports the balance as of the last day of the month.  I never use that card anyway.

I typically let a balance report on the same card every month, although I occasionally switch it up. 

[benjie1305]

Just have the same card report and all others report with zero balance.

That's why it's important to know when all of your cards report.  My DCU Visa statement closes on the 20th of the month but reports the balance as of the last day of the month.  I never use that card anyway.

I typically let a balance report on the same card every month, although I occasionally switch it up. 

Looks like for myself and my wife Ill just stick to the card with the highest CL and have 2-3 dollars report on that monthly while all else is 0. Thanks guys!

[Maurice]

For FICO 8 scoring models, you will get a bump in scores with a mature (24+ months) loan that is paid down significantly.  Once the loan is paid off, your scores will drop to what they were before the loan.

With the previous scoring model, installment loans are pretty much ignored if you have at least 1 credit card reporting.

You can build a credit score over 800 with credit cards alone.  I wouldn't waste time or money on an installment loan unless you actually need the loan, and if you already have a mortgage reporting, this won't help you anyway.

Thanks, pretty sure you were the OP I saw talking about this.  Appreciate the advice! 

Regarding 'few cards reporting a balance' how much does this impact score?  I rotate through unused cards every 3-4 months but will put $10-20 on each, so this should be spaced out?

[ChaimMoskowitz]

It is a percentage of cards, but ideally you want only a single card to report a balance as low as possible.  1 card at $2 ($3 for Discover) is the tested method to get a low limit to actually report and not get credited to $0.

Can you give us an idea how many points we are talking about. Does someone with a thick file and say a score of 780 really need to worry about this? Would it be mainly for those saying getting a mortgage and than are right on the border for a better rate?

[Mendelssohn]

Thanks, pretty sure you were the OP I saw talking about this.  Appreciate the advice! 

Regarding 'few cards reporting a balance' how much does this impact score?  I rotate through unused cards every 3-4 months but will put $10-20 on each, so this should be spaced out?

Yes, cycle through them gradually. Remember that most issuers will still report and update as active with account activity even if you pay to $0 before your statement cuts. You don't need to let it report.

You can also push a $1 payment from bill pay to force an update.