BT'ing a personal installment loan - FICO effect?

[Anonymous]

The first stage of my credit rebuilding/debt reduction plan was getting a $5000 personal loan at 16.9% from my credit union. I am now able to pay off the $4600 balance with a BT offer from AMEX (9.9% for life).

Will paying off a personal loan (not revolving credit card) affect utilization?

Are personal loans figured into debt utilization?

Is this a wise course of action FICO-wise?

[Tuscani]

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Phouchg wrote:

The first stage of my credit rebuilding/debt reduction plan was getting a $5000 personal loan at 16.9% from my credit union. I am now able to pay off the $4600 balance with a BT offer from AMEX (9.9% for life).

Will paying off a personal loan (not revolving credit card) affect utilization?

Are personal loans figured into debt utilization?

Is this a wise course of action FICO-wise?

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Will paying off a personal loan (not revolving credit card) affect utilization?

Yes

Are personal loans figured into debt utilization?

Yes, but revolving credit (credis cards) is more important.

Is this a wise course of action FICO-wise?

FICO-wise, No. Best course of action otherwise, Yes! Remember, saving money is more important than your scores.

[Anonymous]

agreed. I am not anticipating applying for anything for at least a year (except a refi of my auto loan through my credit union, and I will be speaking with a loan officer directly about that) so I think the impact from a slight FICO-lowering should be close to zero. But I will be saving quite a bit on interest, so I am going to go ahead and do it.

[Tuscani]

Cool. The actual impact is going to depend on your overall util now, and what it will be once the BT is complete.