Over the limit on installment loan

[kats_rebuild]

I know installment loan utilization isn't factored into your credit score, but does being over the reported borrowing limit on one negatively effect your score?

[too-much-time]

I don't think installment loans have borrowing limits. Might it be a revolving loan?

But I have read it matters whether you owe 75% or 25% on an installment loan.

[kats_rebuild]

Its a student loan, I would post this question in the student loan section but it just doesn't get the same kind of traffic that this board does. The original loan amount was 7500 and that is what reports on my credit reports. The current balance is like 8100 due to some collection fees and capitalized interest. So its reporting as being over the original installment loan amount.

I'm trying to decide if I should take $1000 out of savings and make a large payment to bring the balance of the loan down. If this would have any effect on my credit score.

[Simply827]

I don't think it matters as it's a very common scenario.

I'm "over the limit" on all but one of my loans, and I've never had any comments from FICO regarding it. It's your UTL on revolving credit that matters.

[alexl22]

I don't think it factors into fico scoring but I've been turned down for CC and a reasoning is non-mortgage loan balance too high. I have student loans that were in forbearance but I've been repaying them for the past 5-6 months since I started my rebuilding process. The balance is still higher then the disbursment amount.

[kats_rebuild]

I got turned down for an AMEX revolver and this was one of the reasons. Installement loan balance too high etc. My credit card utilization is currently just under 10% but I would like to get everything in order to try for a BCP in January. So I think I might just make a large one-time payment to bring the balance down.

[Simply827]

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@kats_rebuild wrote:

I got turned down for an AMEX revolver and this was one of the reasons. Installement loan balance too high etc. My credit card utilization is currently just under 10% but I would like to get everything in order to try for a BCP in January. So I think I might just make a large one-time payment to bring the balance down.

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That's interesting.

I wonder if I'll run into that same issue when I app for Amex next year.