Rebuilding Your Credit

[fairclok]

Hi all,

I've been rebuilding my credit for the past 6 months with much success thanks to these forums.     

I have a school loan that was in forbearance, but no longer.

Current Balance:   $15k

Original Balance:  $13.5k

My reports are showing both numbers.      Are my FICO scores being severely impacted by this?    I was told no, but wanted to be sure by asking the forum.       Is this the same as having the same balances on a Credit Card and having a +100% utilization rate?

Thanks in advance?

[Shogun]

Util does not come into play on this because it is not a revolving account.

[fairclok]

Thanks Shogun.    And thanks for your help with my rebuilding effort.   I read all of your responses to other's posts, which I use to educate myself on my situation.    

[guiness56]

Utilization of installment loans is factored into your score but not near as much as revolving.

Amount of debts owed is 30% of your score and installment loans are included in that.  If you owe more than the original balance it may indicate you are unable to manage debt.

[fairclok]

thanks for the response.

my next question would be.   

If this is my only debt and have no other baddies on my credit report.    If I were to pay $10k of the $15 loan tomorrow, I should see a score increase of some sort they next time my loan reports.....correct?  

[guiness56]

Yes, you would probably see something. 

[Shogun]

If you could pay that, and not pay interest.  It's a win/win!