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Installment Loans

Contributor

Installment Loans

Will paying down or paying off installment loans increase your score?

A Fresh Start
Message 1 of 3
2 REPLIES
Senior Contributor

Re: Installment Loans

Yes because it shows good credit history and management.  But not immediate score movement like revolving payments.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 2 of 3
Valued Contributor

Re: Installment Loans

The most frequent reasons people prepay installment loans are:

-the interest rate is too high
-they are in the mortgage or pre-mortgage process and need to get their ratios improved by lowering monthly payments
-want to sell the item

Any loan will stay on your report for 10 years after you pay it off, so you maintain the good payment history for a while.

You should have one installment loan or mortgage loan on your CR to maximize your FICO.

Starting Score: 693 TU FICO, 679 EQ FICO
Current Score: FICO 8 = 844(9/15) EQ, 827 TU, 811 EX (7/15); mortgage FICO= 758 (9/15)EQ5, 797 TU4, 748 EX2 (7/15)
Goal Score: 750+, but shooting for the 800's
Hyatt Visa Sig ($23K), Amex BCP (24.8K), BofA Travel Rew Sig (22.5K), B&N World MC (22.3K), Amex RP Gold (NPSL w/ S&T), Cash+ Sig (20K),United Mil+ExpSig (16.3K), FNBO Visa (13.1K), Hilton Surpass (10K), Freedom Visa Sig (8.6K), Disc It (16.4K), Citi Dia Pref MC (3.7K),Sam's MC (10K), Wally (7.5K), JCP(5.3K), Costco (2K)
Message 3 of 3