Unsecured Personal Installment Loan Question...

[Andy77]

I have the following balances on my credit cards:

Capital One: 4055.00 CL: 4200

Orchard Bank 2150 CL: 2200

Exxon 250 CL: 850

Bank Of America 800 CL 800

If I transfer the balances listed above to a personal unsecured installment loan, thu bringing down my CC balances to 0, will this have a large positive effect on my score?

EQ: 653.00 major reason for lower score is high CC utilizaiton.

[fused]

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Andy77 wrote:

I have the following balances on my credit cards:

Capital One: 4055.00 CL: 4200

Orchard Bank 2150 CL: 2200

Exxon 250 CL: 850

Bank Of America 800 CL 800

If I transfer the balances listed above to a personal unsecured installment loan, thu bringing down my CC balances to 0, will this have a large positive effect on my score?

EQ: 653.00 major reason for lower score is high CC utilizaiton.

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I say YES! For max FICO points have 1-9% util reporting on only two of these cards and $0 balances on the others. If these are the only negatives, I wouldn't be surprised if you are well into the 700's after your report updates.

[Andy77]

Thank you for your answer....so you are saying its ok to have an unsecured installment loan that is at its max...meaning I am borrowing 9200 and until I pay down the loan its going to start out at 9200 so what type of utilization is that 100%?  How does this look on a credit report?

I was told this type of loan is not a credit line, meaing as I pay it down, I do not have any additional credit available...not sure if this fact will impact my score either

[fused]

If this unsecured loan is an installment loan and reports as such you should be fine. Make sure it's not a revolving line of credit or some other funky installment/revolving hybrid loan. Revolving utilization calculations carry a ton more weight in FICO scoring than installment util calculations.