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How does installment debt-credit ratio affect your score?

Frequent Contributor

How does installment debt-credit ratio affect your score?

I was checking my scores and CRs for the last couple of months and noticed this below. I pulled CR #2 a week after CR #1.

 

CR #1 (EQ FAKE 611)

-CC util 8%

 

CR #2 (EQ FAKO 619)

-CC util 8%

-new installment loan added (this was a new type of installment loan not previously on my CR)

-installment debt-credit ratio reduced by 5%

-total installment debt owed increased

 

These were the big changes from one CR to the next in a 1 week span.

 

Questions:

 

1) Is the increase in score due to my debt-credit ratio decreasing or because I added a new type of installment loan to my CR?

 

2) Does paying off installment debt increase your score at all? Does FICO care about your debt-credit ratio?

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Epic Contributor

Re: How does installment debt-credit ratio affect your score?


money_talks wrote:

I was checking my scores and CRs for the last couple of months and noticed this below. I pulled CR #2 a week after CR #1.

 

CR #1 (EQ FAKE 611)

-CC util 8%

 

CR #2 (EQ FAKO 619)

-CC util 8%

-new installment loan added (this was a new type of installment loan not previously on my CR)

-installment debt-credit ratio reduced by 5%

-total installment debt owed increased

 

These were the big changes from one CR to the next in a 1 week span.

 

Questions:

 

1) Is the increase in score due to my debt-credit ratio decreasing or because I added a new type of installment loan to my CR?  It isn't the DTI and could be the new installment loan.

 

2) Does paying off installment debt increase your score at all? Does FICO care about your debt-credit ratio?  It could a little but not much.  No, FICO does not care about DTI.


 

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