Established Member
jones2929
Posts: 10
Registered: ‎02-27-2013
Paying Down Installment Loan - as Effective as Paying Down Credit Cards?

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.