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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.
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?
@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.