Understanding FICO® Scoring

[NavyLifter]

I know that generally installment debt and student loans do not factor that greatly into utilization points.  However, since I just started paying back my loans 2 years ago, I am still slightly over 100% of the original balance ($43000 balance with a $42,000 limit).  Once that percent drops under 100%, will I see any noticeable increase in scores?  Under 80%?  Or, is it so minor that it isn't significant?

Thanks.

[haulingthescoreup]

They do factor in, but it's in a completely different category of util. When you look on screen 2 of your FICO reports, with the balance scales and the positives and negatives, it often displays your util. When you read it, you'll see that it says "Ratio of your revolving balances to your credit limits."

I think that you get a bump when your installment util is no longer 100%, at least on EX. Back when we had EX scores , I saw a slight hop when my first car payment reported. The previous report had said something about high installment util, and that comment was gone on the second report. I'd post the quote, but it was on a Suze report that I neglected to save, and it fell off a couple of months ago.


eta: my score bump might have been about 5 points. Can't remember now... The FICO High Achiever comments mention something about under 40% installment util (check the thread in my siggy below), but they also seem to think this figure is a few thousand dollars or something, so that's reflecting awfully old data.

Message Edited by haulingthescoreup on 04-07-2009 03:42 AM

[NavyLifter]

Sounds good hauling...I won't really worry about it then.