My util on my installment loans is very high at the moment because of my student loans. It is going to take many years for me to pay those loans off, so I was wondering do the CRAs increase your personal limit for installment loans as your FICO improves or does it stay the same no matter what?
Starting Score: TU: 566
Like, for instance, I have $74000 in student loans and my report from annualcreditreport.com says that I can borrow up to $90000 in installment loans. Does that amount increase as my FICO improves?
@lithium78 wrote:Like, for instance, I have $74000 in student loans and my report from annualcreditreport.com says that I can borrow up to $90000 in installment loans. Does that amount increase as my FICO improves?
I kind of doubt it. First of all, that bit on annualcreditreport.com is probably more of a you-might-be-able-to-get-this-much-or-that-APR-with-your-scores note.
The loan amount is generally more of a function of your ability to repay (= income) or expectation of future ability when it comes to student loans. I can see it if there's a huge difference in scores, and with the low score you can only borrow $20K, and the new score lets you borrow $60K or something. But the more I think about it, the more I can believe that I might be completely wrong. 
If you're still in school, this sounds like a good question for your student loan office, or for your original lender.
@MarineVietVet wrote:
@lithium78 wrote:Like, for instance, I have $74000 in student loans and my report from annualcreditreport.com says that I can borrow up to $90000 in installment loans. Does that amount increase as my FICO improves?
I don't think I've ever seen such a notation on any of my reports but that's only me.
Installment loans are fixed amounts from the beginning and once they are paid off the account is closed. They are not like revolving credit that stays open and can be drawn upon, paid down, drawn upon, paid down, etc. over and over.
Of course I might not be understanding your question.
+1 
