JoDa wrote:So long as you've got a plan to keep from running the cards up again, and it sounds like you do, then it won't hurt.
[color="Red"]I'm curious why you think more than 4 installment loans is problematic, Thom.[/color] While I know, technically, mortgages and installment loans are different categories, they're both basically the same thing, and I'll have 4 with my new purchase (3 mortgages and a student loan). Does this mostly relate to unsecured/dischargeable debt (obviously, everything I have is either secured or basically ineligible for discharge)?
I've read at a variety of locations that having more than 4 installment loans can be a problem, primarily due to the commitment of funds that one will necessarily have to pay back the loans. This would be in addition to a mortgage loan(s). And indeed at one time, I was carrying 5 personal loans, and my scores did take a bit of a hit due to that. As soon as I paid one of them off, the scores went back up. Paying off another loan and dropping to 3 resulted in a few more point increases.
And just as a means of explanation; I'm not in the habit of taking out loans willy nilly!! Two of the most recent loans that I've taken out were for my partner (who has lousy credit) and one for my daughter, who had limited credit at the time. Both of them made payments to me for the loans, so I wasn't out anything other than the minor ding on my credit, which is strong enough to absorb it.