Do isnstallment loans affect utilization?

[Anonymous]

Will an installment loan (secured) affect utilization %

[MarineVietVet]

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@Anonymous wrote:

Will an installment loan (secured) affect utilization %

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If you mean are they calculated into revolving utilization the answer is no.

Installment utilization is scored but it's such a small part of scoring that it can virtually be ignored.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[RobertEG]

+1

FICO, being a payment risk anaylysis, realizes that, in most cases, risk of default on an installment loan is much lower than risk of default on a revolving ((CC) account. Most people will protect their assests before protecting their credit cards, and since most installment loans are secured by your property or assets, FICO scores util on installment loans at only a small fraction of total util scoring.  For the most part, since you dont control util on installment loans, you can just ignore them in your % util improvement quest.