Re: Paying Down Installmen
[ Edited ]
t Loan - as Effective as Paying Down Credit Cards?
04-18-2013 04:37 PM - edited 04-18-2013 04:37 PM
Revolving util far outweighs installment util. In fact, installment util is a teeny tiny part of FICO scoring. The only experience I had was paying off a car note from 25% to 0%. I saw a gain on EQ, but I think most of that was due to adding another $0 balance.
ETA....and I'll add that this is a good thing. If you add a $500k mortgage you won't see a large score ding for staying at or near 100% util while the balance slowly goes down.