@SouthJamaica wrote:
@Revelate wrote:DOLA is generally DOLU when it comes to the bureaus and FICO.
As long as the lender keeps reporting the balance every month, it's not any issue even if the balance stays fixed for extended periods of time. Where this goes sideways is lenders like Synchrony which don't report a statement if it's $0 and maybe there's some inactivity flag which we've never found. This would tie in there if it exists in my opinion.
Likewise monthly payment isn't factored from any of the data we have or understand, it is used in DTI calculations which is why it's on the report really and I'm almost 100% confident that various UW does look at it but at least for all current FICO algorithms it doesn't matter.
This may change if we get to trended payments in FICO 10 / VS 4 or whatever, I have no idea how it's going to look at an installment tradeline with $0 for payments... I'm hoping no news = good news on that front haha, should be on credit cards theoretically, hopefully it will be here too.
And in news of the personally wierd, I have floated my auto loan balance when I was between gigs, prior to that I was paying it down aggressively but when I go into a cash conservation state, that includes auto loans in terms of minimum payments which in this case was $0 from the prepayments.
So you're saying (a) it wouldn't factor into A's FICO score and (b) it might factor into a manual review.
Would it factor into an automated review?
Anything that's on the report can factor into an automated review, and I would certainly be doing the back-of-hand DTI calculation based on what's in the credit report if I were reviewing someone's file. I can't think of any reason why they wouldn't actually and a whole bunch as to why they would, so yes I do think it is indeed looked at.
