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How is "amount of debt" factor calculated?

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SouthJamaica
Mega Contributor

Re: How is "amount of debt" factor calculated?


@Thomas_Thumb wrote:

If this is your only open installment loan, consider paying it down to $8 - which drops your balance to loan ratio to 8% as a 1st step. Check the result and then decide whether to pay off the loan or keep it with a token balance.

 

Some posters have mentioned seeing a benefit from an open installment loan and a score drop when said loan is paid off and closed. 

 

Edit: SJ, I re-read yur prior post and see you paid the loan in full, so no 2 step option.


I had paid it down to 15.6%, but they were saying that was too high. As I mentioned earlier, I think it's possible that it was just a glitch and they were thinking the original loan was $100 rather than $500. In any event I'm more interested in exploring the differences between the EX 'amount of debt' factor and the TU & EQ "amount of debt" factors. If they all have the 2nd instalment loan at the same number -- zero -- it will be easier to compare them. If my scores are 10 points higher or 10 points lower doesn't really matter at the moment.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

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