Valued Member
Posts: 44
Registered: ‎11-07-2012

Unsecured loan and its impact.

Account Name & Number Opened    


Account Type Unsecured Loan

Credit Limit : 8000    Balance: 7,621.89


Do utilization on the "unsecured loan" affect the credit score? I ran recommendations in quizzle, which is a FAKO, and its telling me to bring my balance on the loan to 80% of the loan which is 6400.00. For potential raising of 11 pts. Does it still hold true for FICO scoring models?


And also, Does anyone know the impact of scoring on average, for individual Credit card utilization in tiers?  like

Citi Credit Card

Credit Limit : 8000                 Balance:  4635          Utilization:   57.94%


Thanks in advance.


Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007

Re: Unsecured loan and its impact.

It's not the same for FICO, otherwise you'd see hefty score hits when adding a mortgage or any other loan. When it first reports, it'll always be at 100%. Installment util is a teeny tiny part of FICO scoring. Also ignore Quizzle's reporting. I have a LC loan and your CR from the CRA and your FICO report will list it as an installment.


FICO does look at individual and overall util. The damage varies by credit profile, your mix of credit, scoring bucket, etc. It depends also on that CC's impact to your overall util.

Valued Member
Posts: 44
Registered: ‎11-07-2012

Re: Unsecured loan and its impact.

I'm guessing nobody figured out the Sub-categories that makes up the Utilization of the Scoring Model (30%).. only thing i found out:


7. Amounts owed

The amount owed on accounts makes up approximately 30% of the weight of the score.

Having credit accounts and owing money on them does not mean the consumer is a high-risk borrower and gets a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile.

This category takes into account:

  • The amount owed on all accounts.
    Even if the consumer pays off his/her credit cards in full every month, their credit report may show a balance on those cards. That's because creditors report a month in arrears.
  • The amount owed on different types of accounts.
    In addition to the overall amount the consumer owes, the score considers the amount he/she may owe on specific types of accounts, such as credit cards and installment loans.
  • Whether the consumer is showing a balance on certain types of accounts.
    In some cases, having a very small balance without missing a payment shows that the consumer has managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your credit score. In fact it could lower the score.
  • How many accounts have balances.
    A large number can indicate higher risk of over-extension.
  • How much of the total credit line is being used on credit cards and other "revolving credit" accounts.
    Based on the evaluation of thousands of credit files, a consumer closer to being "maxed out" on many credit cards statistically has a higher chance of having trouble making payments in the future. This is a factor seen very frequently at Advantage Credit. A consumer may wonder why their credit score seems low when they pay their minimum payments on time month after month--it's likely that the balance owing on the account is over 50% and triggers the "high proportion of balances to credit limits" scoring factor.
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