SoulSmilen wrote:
I beg to differ. Although installment accounts don't count as much as revolving accounts, there is some score improvement through balance reduction.
No, I beg to differ!
Here's an example:
auto loan of 30K and a balance of 20K with a perfect payment history. pay 15K one month and the new balance is 5k and score might go up a few points or maybe none at all.
a person with three CCs, each with 5K CLs and balances of $3,250 and a perfect payment history. util 65% and pays all three balances down to $490 about 15% util, the result a much larger spike in their scores. In fact, if the util goes to 1-9% it would not surprised me to see scores increase 50, 60 or more points.
I think you are really over doing it with installment loans.