topic Re: Does the remaining loan balance play factor in scoring? in Understanding FICO® Scoring

Does the remaining loan balance play factor in scoring?

Gregory1776 — Thu, 20 Jun 2024 18:57:45 GMT

I have a loan that is almost 3 years old, and just about at 50% paid off. If I paid it down to 48.9%, like credit cards will give me a boost in scoring?

Re: Does the remaining loan balance play factor in scoring?

MissLiz — Thu, 20 Jun 2024 21:34:39 GMT

@Gregory1776 Yes

Re: Does the remaining loan balance play factor in scoring?

SouthJamaica — Thu, 20 Jun 2024 21:55:25 GMT

@Gregory1776 wrote:
I have a loan that is almost 3 years old, and just about at 50% paid off. If I paid it down to 48.9%, like credit cards will give me a boost in scoring?

No. If it's your only loan, it will give you a big boost in your FICO 8's and 9's when you get to 91% paid off, but not before that.

Re: Does the remaining loan balance play factor in scoring?

Thomas_Thumb — Fri, 21 Jun 2024 01:21:39 GMT

@Gregory1776 wrote:
I have a loan that is almost 3 years old, and just about at 50% paid off. If I paid it down to 48.9%, like credit cards will give me a boost in scoring?

Anticipate 0 point gain from that paydown. Age of loans is a minor scoring factor. If it's your only loan on file, reaching 3 years might add 2-5 points.

Any paydown is good. Do it and report back on score if you can isolate the paydown.