Established Contributor
Posts: 532
Registered: ‎03-20-2009

how utilization affects scoring

I know high utilization is a huge factor in scoring but does FICO view high utilization differently on say a credit card than an installment loan.  The reason I'm asking is that I've got my utilization nearly down to under 20% on my CC  but I'm waiting on my new auto loan to report which of course is going to show me owing nearly 100% until I get a few months payments made and even for about a year or so it's going to be pretty high utilization. 

Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
Current (7/14): EQ 572 (FICO)/TU 624 (FICO)/ EX 612 (FICO)

Posts: 22,406
Registered: ‎01-17-2008

Re: how utilization affects scoring

Yes there are 2 different utilizations, one for revolving, one for installment.


While revolving utilization is scored heavily, intstallment is not, probably 10% or less.

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