An I is one of the most important things you can have on your credit report. You probably cannot have a great credit score without one. Not all credit agencies use alphanumeric codes on their reports, though. Some use plain English, so do not panic if you credit report contains no I's. You can get an added boost of an I by having it in proper proportion with R's, which are revolving accounts, such as credit cards.
Identification
An I on a credit report refers to an installment loan. This type of credit account has a set schedule for when you must pay back the debt, usually a consistent monthly bill over a number of years. The I will also come with another number or letter. The combination I2, for example, means you were 60 days late at least once in the history of the account.
Importance
A tenth of your FICO score comes from using several types of loans, according to the Fair Isaac Corporation. Without having an installment loan on your report, you might prevent your score from entering the upper tier. How much installment debt and the number of payments you have left fall under the "amounts owed" category worth 30 percent.
Misconception
For an installment account to boost your credit report, you must have an account with a balance left. Once you make the last payment on an installment loan, the FICO credit scoring model essentially ignores it for scoring purposes, but the account remains viewable on your report for 10 years, according to the website Credit Net.
Tip
Having two revolving accounts to every installment usually maxes out the "mix of credit" category on the FICO score, according to MintLife. Before you take out a loan with the purpose of getting the "right" mix, consider if you can afford the loan and any other debt obligations. Applying for a new loan to boost your score could backfire if debts already make up more than 36 percent of your income.
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