56: Lack of recently reported installment accounts


An installment account has a fixed monthly payment for the life of the loan. Auto loans and student loans are common examples of installment accounts. The VantageScore credit score model relies on information in your credit files at the three national credit reporting companies (Equifax, Experian and TransUnion) to generate your score. Because you have no installment accounts where a lender has reported recent activity, your credit file does not contain enough information about your use of this kind of credit. A mix of different types of open and active credit accounts, including installment accounts, can have a positive impact on your credit score.


Maintaining open and active credit accounts in good standing can help improve your credit score.