FreeDiningFanatic
DIS Veteran
- Joined
- Aug 18, 2015
Credit Mix is 15% of the score. Some people see a very meaningful drop in their scores when their last installment loan is paid off, I saw a 30 point drop when I paid off one car before the new loan had reported. Rather than a car loan you can do what is called a Share Secure Loan with some credit unions, I've used Navy Federal in the past but there are others. You take out a loan guaranteed with your savings account, pay 90% of it back immediately and pay a few dollars a month for the next five years. That gives you an installment loan on your report and costs less than $50 total for the five years in interest. I would wait and see how much your score is affected and decide if it's worth it to you.
Thanks for posting this again. I believe you posted about it in the past and I could never find it again. We are in that position where we have no installment loans; we've paid off all mortgages and car loans. I really don't know if we took a credit hit, but our scores are between 780-800. We've never been turned down for credit, but are scores aren't as high as many report here. So I probably won't do anything at this point, but it's good to know it's an option.