topic How should I interpret this on FICO Report ? in Understanding FICO® Scoring

How should I interpret this on FICO Report ?

Red1Blue — Fri, 03 Jul 2020 21:05:30 GMT

I am trying to understand how to interpret this statement on my FICO Report. If I paid down 75% why it is still negative ? What does this message means ?

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

"Percentage of principal you have paid down on your open non-mortgage installment loans75%

FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."

Re: How should I interpret this on FICO Report ?

Anonymous — Fri, 03 Jul 2020 21:23:50 GMT

@Red1Blue wrote:
I am trying to understand how to interpret this statement on my FICO Report. If I paid down 75% why it is still negative ? What does this message means ?

The remaining balance on your mortgage or non-mortgage installment loans is too high.
"Percentage of principal you have paid down on your open non-mortgage installment loans75%
FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."

There's multiple utilization thresholds for installments

I think you're progressively "penalized" until its under 9%

Re: How should I interpret this on FICO Report ?

SouthJamaica — Fri, 03 Jul 2020 21:25:49 GMT

@Red1Blue wrote:
I am trying to understand how to interpret this statement on my FICO Report. If I paid down 75% why it is still negative ? What does this message means ?

The remaining balance on your mortgage or non-mortgage installment loans is too high.
"Percentage of principal you have paid down on your open non-mortgage installment loans75%
FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."

I once tested my only installment loan as I paid it down, and kept getting that negative reason code even when I got the balance down to 14%. Only when I got it down to 9% did it finally go away.

Re: How should I interpret this on FICO Report ?

Red1Blue — Fri, 03 Jul 2020 21:41:54 GMT

@Anonymous wrote:
@Red1Blue wrote:
I am trying to understand how to interpret this statement on my FICO Report. If I paid down 75% why it is still negative ? What does this message means ?

The remaining balance on your mortgage or non-mortgage installment loans is too high.
"Percentage of principal you have paid down on your open non-mortgage installment loans75%
FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."
There's multiple utilization thresholds for installments

I think you're progressively "penalized" until its under 9%

Then why is it saying about High FICO Achievers and 40% ?

Re: How should I interpret this on FICO Report ?

Red1Blue — Fri, 03 Jul 2020 21:45:40 GMT

@SouthJamaica wrote:
I once tested my only installment loan as I paid it down, and kept getting that negative reason code even when I got the balance down to 14%. Only when I got it down to 9% did it finally go away.

I beleive there might be a score gain when the balance is under 9% and once the balance is paid off then the scores will drop again correct ? This is a secured installment loan. It will get paid off in 6 months. What is the benefit of having 6 more monthly payments reporting on the installment account vs. paying it off ? Is there any benefit keeping the account open for 6 months and let the payments post ? Or should I just pay it off and get the secured funds out and use it for some thing else ?

Re: How should I interpret this on FICO Report ?

Ficoproblems247 — Sat, 04 Jul 2020 01:10:08 GMT

The reason codes are there to give you general direction; they're definitely not the "end all." If it were me, I would for sure keep the loan going and let it serve its purpose, especially if it's your only open loan. Just my 2 pennies.

Re: How should I interpret this on FICO Report ?

SouthJamaica — Sat, 04 Jul 2020 02:14:31 GMT

@Red1Blue wrote:
@Anonymous wrote:
@Red1Blue wrote:
I am trying to understand how to interpret this statement on my FICO Report. If I paid down 75% why it is still negative ? What does this message means ?

The remaining balance on your mortgage or non-mortgage installment loans is too high.
"Percentage of principal you have paid down on your open non-mortgage installment loans75%
FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."
There's multiple utilization thresholds for installments

I think you're progressively "penalized" until its under 9%
Then why is it saying about High FICO Achievers and 40% ?

The "high achiever" stuff is just some stuff they put in to "inform" us.

Re: How should I interpret this on FICO Report ?

SouthJamaica — Sat, 04 Jul 2020 02:16:46 GMT

@Red1Blue wrote:
@SouthJamaica wrote:
I once tested my only installment loan as I paid it down, and kept getting that negative reason code even when I got the balance down to 14%. Only when I got it down to 9% did it finally go away.
I beleive there might be a score gain when the balance is under 9% and once the balance is paid off then the scores will drop again correct ?

Yes if it's your only open installment loan.

This is a secured installment loan. It will get paid off in 6 months. What is the benefit of having 6 more monthly payments reporting on the installment account vs. paying it off ? Is there any benefit keeping the account open for 6 months and let the payments post ? Or should I just pay it off and get the secured funds out and use it for some thing else ?

If it's your only open installment loan, and it's paid down to 9% or less, the benefit is 6 months of a score bonus.