Paying Down Installmen
t Loan - as Effective as Paying Down Credit Cards?
04-18-2013 02:38 PM
After doing some research, it looked like it would be beneficial to my credit score to get the balance on an installment loan to be less than 50% of the original loan amount. So, I made a payment to get the principal less than 50% of the original amount. My scores didn't really seem to change one way or the other.
On the other hand, when I made a similar payment on a credit card to get it under 50%, my scores went up by a notable amount.
So, I guess that you don't get as much "bang for the buck" with an installment loan payment. Does that make sense?
It's all good - paying down balances is a good thing making me a much more relaxed person, but I was just curious about the score implications.