Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
Re: Paying Down Installment Loan - as Effective as Paying Down Credit Cards?
[ Edited ]

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.