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Please share your thoughts., advice.

Regular Contributor

Please share your thoughts., advice.

My scores are into 740 both Transunion and Equifax fico I have outstanding amount on credit cards @ 7500. iam going to pay off in next 40 days. My scores are going to hit 755 or 760. I will leave little blance on any one card or 2 .. I have one quick question...... I have auto loan @ dcu for 1.99 outstanding amount 17000.... installment 316 dollars per month. iam comfortable with the installment. No problems at all.... I have surplus cash around 8000 ... iam thnking of paying towards auto loan... will my scores improve? and refinance again with dcu @1.99 ...so my installment comes down to 125 to 130 dollars.... Is that good idea... Iam doing this to improve my scores to 770 levels...into 780s.. Best scenario..... please... Thanks every one ... Srags.
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Moderator Emerita

Re: Please share your thoughts., advice.

Refing will add a new tl - which will IMO do more harm than good.

Paying down your installment might be the best option but there is no guarantee it will garner the FICO score you want now. Util and time, no inqs and a longer AAOA - however that calculates to 770 is anybody's guess.
Message 2 of 4
Moderator

Re: Please share your thoughts., advice.

Installment loan "utilization" isn't calculated in the same way as revolving utilization.  It's mostly if not completely ignored by FICO actually.

 

If we're just talking FICO scoring, you're better off keeping your existing tradeline for as long as possible; if you need the payment to be reduced for whatever reason, then you might consider kicking additional money to it and refinancing.  Or if you're trying to make room for a DTI calculation may be similar.

 

Refinancing should always come down to a financial decision anyway.  Generally speaking it'll always be a negative for FICO.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Regular Contributor

Re: Please share your thoughts., advice.

Thanks so much
Message 4 of 4