Author Topic: Credit Score - How good is good enough?  (Read 225 times)

Samuel

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Credit Score - How good is good enough?
« on: October 05, 2018, 10:52:09 AM »
I'm yet again reconsidering and running the numbers on purchasing something in my hot but slightly cooling hometown (that I'd rather not be priced out of) real estate market.

Then out of the blue a week ago I get an email from my credit card company saying that my credit score has dropped 50 points (apparently they include FICO monitoring as a benefit). Score went from 820ish to 770ish. As far as I can tell it's due to my only installment loan (a car loan paid off 6.5 years ago) dropping off the report and leaving only revolving accounts (credit cards) and a "lack of account diversity" that I got dinged for.

Pretty glad this didn't happen in the middle of closing on a property... but is it worth seeking a cheap installment loan of some kind to get back the account diversity that hurt me? Most sources I've seen say there isn't a mortgage rate advantage over 760, but does anyone have direct experience that says otherwise? Even if that's true should I be worried to be so close the to 760 threshold where a nudge down (due to inquiries, temporarily high utilization ratios, etc) could mess up a pre-approved mortgage rate or loan closing?

If a new installment loan would truly help, any ideas for the cheapest option?

Thanks.