topic Re: Does this hurt your SCORE? in Understanding FICO® Scoring

Does this hurt your SCORE?

Anonymous — Thu, 04 Feb 2016 02:45:07 GMT

The remaining balance on your mortgage non mortgage or installment loans is to high.

I got to skip a $222 car note for christmas now I get that on myfico it's my only negative factor besides short credit history. How much does it affect score.

Re: Does this hurt your SCORE?

azguy13 — Thu, 04 Feb 2016 02:50:14 GMT

Are you saying you missed a payment which resulted in a 30-day late or are you saying that all of your accounts are positive and myFico is telling you that your installment loan balance is too high which may be affecting your score?

Re: Does this hurt your SCORE?

Anonymous — Thu, 04 Feb 2016 03:03:07 GMT

All of my loans are positive but my bank let me skip a car payment so instead of owing $11788 I still owe $12000 so since my loan balance did not decrease I now get this negative factor so does it hurt my score alot

Re: Does this hurt your SCORE?

azguy13 — Thu, 04 Feb 2016 03:43:38 GMT

No, since all the tradelines are positive I am pretty certain it is not hurting your score. At least, I have never heard of that happening.

Re: Does this hurt your SCORE?

Bankrupt2019 — Thu, 04 Feb 2016 07:31:47 GMT

That "factor" means nothing other than the amount owed is still relatively close to the amount borrowed. theres always going to be a "factor" listed until you cannot improve your scores anymore.

No,skipping a payment as approved by a lender with no negative reporting will not hurt your scores.

Re: Does this hurt your SCORE?

Anonymous — Thu, 04 Feb 2016 11:43:36 GMT

Re: Does this hurt your SCORE?

Anonymous — Thu, 04 Feb 2016 12:28:29 GMT

As mentioned, all they are saying is that the current balance is a higher percentage of the original total. As you pay down the loan, that will eventually change. I get the same thing on my motorcycle loan as I have only paid @ $1000 out of $6400 so far. Just keep making payments and it'll take care of itself. (I'm not sure what "good" is, under 50% maybe?)

Re: Does this hurt your SCORE?

takeshi74 — Thu, 04 Feb 2016 13:29:53 GMT

@Anonymous wrote:
The remaining balance on your mortgage non mortgage or installment loans is to high.

I got to skip a $222 car note for christmas now I get that on myfico it's my only negative factor besides short credit history. How much does it affect score.

As the message states it's the balance / loan that matters -- not the one payment. I have the same message due to a relatively new car loan opened in 2014 but my FICO 8's are over 800.

Short history is probably the bigger factor in your case though it's difficult to really say without more details about your credit profile.

Re: Does this hurt your SCORE?

BallBounces — Thu, 04 Feb 2016 14:57:08 GMT

myFICO does not prescribe to the old saying: "If you've nothing nice to say, then say nothing at all."

Re: Does this hurt your SCORE?

Thomas_Thumb — Thu, 04 Feb 2016 16:17:27 GMT

@Anonymous wrote:
@Anonymous mentioned, all they are saying is that the current balance is a higher percentage of the original total. As you pay down the loan, that will eventually change. I get the same thing on my motorcycle loan as I have only paid @ $1000 out of $6400 so far. Just keep making payments and it'll take care of itself. (I'm not sure what "good" is, under 50% maybe?)

The messages can be rather misleading. I had a couple associated with an EQ Fico 4 bankcard score last November:

1) Balance on loans too high (only one loan, a mortgage at 41% remaining)

2) Recent new credit (most recent account added over 4 years ago & 1 HP for a CLI 16 months ago).

If score is below a certain threshold, a couple reason statements must be provided. However, what is listed may not equate to a factor needing attention.