06-05-2013 10:03 AM
I checked my Walmart FICO today. Under "Key Factors Affecting Your FICO Score", it says "The remaining balance on your installment loans is too high."
The installment loan I have is a new auto loan, purchased March, 2013.
I know that % Utilization is a factor in FICO scoring but I thought % Utilization applied to credit cards only. The above suggests that it may also apply to auto loans. And one may extrapolate to conclude that it may also apply to mortgage loans.
Can someone explain how remaining balance on an installment loan is factored into FICO scoring? And what might the be the threshold percentages?
06-05-2013 10:33 AM
They will always have something in there. Don't worry, that's not bringing your score down. All new loans have a high utilization factor, that's just the way it is. I've seen some strange comments listed under the "factors" heading.
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