Just got off the phone with a Fico employee. The employee told me that
while Revolving debt (credit cards) are weighted heavier in the fico formula then Installment accounts (student, auto loans) you can expect your fico to improve as
you pay down installment debt. I know this is true because I just received a 8 point score boost via scorewatch because I made a significant payment against the principal of a student loan, which in turn lowered my overall debt by several hundred dollars.
This feeds into our earlier discussion about whether to pay down student loans faster or slower. The proven answer seems to be, IF YOU WANT A HIGHER FICO SCORE QUICKER, then start putting bigger money towards your loans. Or, if you like your fico to grow at a slow pace, then just pay the minimum balance owed each month.
I think all of us here want our Fico's to improve ASAP, so a proven way to do that is to pay down your installment debt faster. Of course, if you have a problem with high revolving debt (credit cards), then you need to tackle that first. After that, I am becoming a strong advocate for paying off loans faster then the minimum.
Your score will go up much faster!