Having a brain fart...

[silly34]

Do installment loans factor into utilization? It's late...

B.

[haulingthescoreup]

No, they're over in installment land. Util looks at your revolving credit.

I have read that FICO likes to see non-mortgage installment under 50%, but there isn't nearly the weight placed on this, and I don't know that it would be worth losing $$$ liquidity to pay down a car loan, etc, in hopes of helping your score. I doubt very seriously that it would do much of anything.

[Anonymous]

Paying down installment loans to less than 10 months of life helps with DTI for a mortgage.  Otherwise - it's a fincanial 'call'.

[haulingthescoreup]

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@Anonymous wrote:

Paying down installment loans to less than 10 months of life helps with DTI for a mortgage. Otherwise - it's a fincanial 'call'.

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Is that because mortgage lenders don't consider installment loans that are that close to payoff? (So good to have a Realtor here who knows her stuff!)

[Anonymous]

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@haulingthescoreup wrote:

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@Anonymous wrote:

Paying down installment loans to less than 10 months of life helps with DTI for a mortgage. Otherwise - it's a fincanial 'call'.

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Is that because mortgage lenders don't consider installment loans that are that close to payoff? (So good to have a Realtor here who knows her stuff!)

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Depends on the mortgage lender and what scores you are trying to achieve for a certain percentage rate.

For our second house cuz we were running a little high on DTI- (not now though)- they actually made us pay off one installment and close a Lowe's CC.