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03-06-2013 03:36 PM
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?
03-06-2013 03:38 PM
Util does not come into play on this because it is not a revolving account.
03-06-2013 03:40 PM
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.
03-06-2013 03:56 PM
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.
03-06-2013 04:16 PM
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?
03-06-2013 04:19 PM
03-06-2013 05:53 PM
If you could pay that, and not pay interest. It's a win/win!