Balance on installment loan is too high?

[masscredit]

I'm reveiwing my credit reports and see this -

The remaining balance on your mortgage or non-mortgage installment loans is too high.

FICO® Scores weigh the balances of mortgage and non-mortgage installment loans [?] (such as auto or student loans) against the original loan amounts. In general, when an installment loan is first obtained the balance is high. As the loan is paid down, the balance decreases.

As installment loan balances decrease, they have less impact on a FICO® Score.

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The only loan that I have is a car loan that was opened in September. At what point percentage-wise does a loan/mortgage have less of an impact and how many points might that be worth? 

[Anonymous]

I'd like to know this as well, I have this same issue, my actual util. is under 15%, but because of my newly refinanced auto loan, it looks like my balances are high.

[Anonymous]

It's more of a recently opened a new account message than anything else. Obviously most installment loans have a larger monthly payment than the minimum on a CC. So it affects you ability to repay other things in a greater manner. My large secured loan gave me this notice till I got it down to around 50 percent of the balance on EQ and around 30% on EX. I took out a smaller (500 dollar) secured loan with alliant andim getting it again. Obviously 500 bucks is nothing, but my feeling is it simply is showing as a flag because Ihave a new account with almost no repayment history on it.

[Anonymous]

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@masscredit wrote:

I'm reveiwing my credit reports and see this -

The remaining balance on your mortgage or non-mortgage installment loans is too high.

FICO® Scores weigh the balances of mortgage and non-mortgage installment loans [?] (such as auto or student loans) against the original loan amounts. In general, when an installment loan is first obtained the balance is high. As the loan is paid down, the balance decreases.

As installment loan balances decrease, they have less impact on a FICO® Score.

>>

The only loan that I have is a car loan that was opened in September. At what point percentage-wise does a loan/mortgage have less of an impact and how many points might that be worth? 

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This is what Fico says about it:

FICO High Achievers have paid down an average of 39% of the principal on their non-mortgage installment loans.

Apparently, that's meaningless. I've paid off half my installment loan and I still have the balance too high message,

[MarineVietVet]

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@masscredit wrote:

I'm reveiwing my credit reports and see this -

The remaining balance on your mortgage or non-mortgage installment loans is too high.

FICO® Scores weigh the balances of mortgage and non-mortgage installment loans [?] (such as auto or student loans) against the original loan amounts. In general, when an installment loan is first obtained the balance is high. As the loan is paid down, the balance decreases.

As installment loan balances decrease, they have less impact on a FICO® Score.

>>

The only loan that I have is a car loan that was opened in September. At what point percentage-wise does a loan/mortgage have less of an impact and how many points might that be worth? 

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TU has said this about my profile for many years but EQ and EX don't seem to have a problem with it.

IME it makes very little difference in scoring especially with the newer FICO 08 model.

As always YMMV.