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Contributor
kaymom
Posts: 94
Registered: ‎03-12-2012
0

Installment Loans

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

A Fresh Start
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

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
Valued Contributor
crunching_numbers
Posts: 1,093
Registered: ‎02-15-2012
0

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: 748 TU(12/12), 783 TU98 , 813 TU08 FICO, 744 EQ FICO , 735 EX(9/12), 794 EX08 FICO, 809 EX08 bankcard FICO
Goal Score: 750+, but shooting for the 800's
Hyatt Visa Sig ($23K), Amex BCP (20.7K), BofA Travel Rewards ($17.5), B&N World MC ($17.3K), Amex RP Gold (NPSL w/ S&T), Cash+ Sig (15K), FNBO Visa (13.1K), Hilton Surpass (10K), Freedom Visa Sig ($8.6K), Disc It ($8K), Citi Dia Pref MC ($3.7K),Sam's D ($8.5K), Wally D ($7.5K), JCP($5.3K)

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