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Installment loan balances affect TU score?

Established Contributor

Installment loan balances affect TU score?

I was under the impression that installment loans didn't affect TU FICO scores, but when I got my Walmart TU08 score it says that the high balance of my student loans has negatively affected my score.  I borrowed a lot in student loans for college and grade school and I've been making payments consistently for seven years, but the loan amount is still at 100% because for a time interest capitalized and then I could only make interest payments for a couple years.  It's going to take a few years to get significant movement on the balance of the student loans, so is this going to be a continuing issue moving forward?  Thanks.


Starting Score: TU: 566
Current Score: TU: 741 (Discover FICO); EQ: 755 (MyFico) EX: 774 (FAKO)
Goal Score: 800

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New Contributor

Re: Installment loan balances affect TU score?

I'd like to know the answer to that as well.I just bought a car and was under the impression that having an installment loan can help my credit score,but yet some say that such a loan would negatively affect my score since its considered as debt? which is true?

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Moderator Emeritus

Re: Installment loan balances affect TU score?


lithium78 wrote:

I was under the impression that installment loans didn't affect TU FICO scores, but when I got my Walmart TU08 score it says that the high balance of my student loans has negatively affected my score.  I borrowed a lot in student loans for college and grade school and I've been making payments consistently for seven years, but the loan amount is still at 100% because for a time interest capitalized and then I could only make interest payments for a couple years.  It's going to take a few years to get significant movement on the balance of the student loans, so is this going to be a continuing issue moving forward?  Thanks.


While installment loans play a small part in FICO scoring, they will impact all FICO versions out there. It's not so much the util of that loan, as it is the balance.

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