Lack of recent installment loan information

FICO code numbers

Code numbers can differ by bureau and score version. The wording of the statement is what to match.

What puts this reason on your score

An installment loan has a set payment and an end date: car loans, student loans, personal loans and mortgages. When none of them is open and reporting, this code can appear. Someone who paid off a last car loan two years ago and now uses only cards is a common case. TransUnion uses code 04 for it; Equifax and Experian use 32.

FICO counts installment loans as part of credit mix, which makes up about 10% of the score for most people. Because the category is small, this code usually sits low in the list, and FICO's own guidance says opening an account only to improve your mix probably isn't worth the risk of the new inquiry and account.

What to check on your credit report

• See whether any installment loan shows as open with a recent reported date on that bureau's report.
• If you do have an open loan, confirm it appears on this bureau. Some lenders report to only one or two bureaus, which is how the code can show on one score and not the others.

What you can do about it

• Work the higher-ranked codes first. This one tends to carry less weight.
• Don't take out a loan only to clear this code. The new account adds a hard inquiry and lowers your average account age.
• If a loan you're paying isn't on this bureau's report, ask the lender which bureaus it reports to.

How soon a change can show

Only an open installment loan reporting payments changes this code. Since that means a new account, expect the inquiry and the young account to weigh on the score before any benefit shows.

If you are applying for a mortgage

First-time buyers see this code a lot, and the mortgage itself clears it once it starts reporting after closing. Taking out a loan now to fix it adds an inquiry and a payment right before underwriting.

Guides that go deeper

• How much credit mix counts in your scoreCredit mix is 10% of a FICO Score, and FICO says you don't need one of each account type. The math on taking a loan just to improve mix rarely works.
• How credit builder loans work and who they helpA credit builder loan holds the money until you've paid it off. What gets reported, what it costs, and what a CFPB study found about who benefits.
• What your credit score reason codes are telling youReason codes list what held your score back the most, in order. What the common ones mean, which you can act on, and which to leave alone.