topic Re: Score increase for auto loan balance decrease in Understanding FICO® Scoring

Score increase for auto loan balance decrease

CreditBob — Mon, 28 Jul 2025 11:05:31 GMT

Has any other member taken notice that if your original auto loan balance decreases about 30-50%, that your score goes up? I am asking this because it states, that high FICO score achievers have paid an average of 40% of their original loan amount. Has anyone had any experience with this?

Re: Score increase for auto loan balance decrease

Vinjints — Mon, 28 Jul 2025 12:54:20 GMT

The original auto loan balance part is a bit confusing, but are you referring to paying down your loan overall? Reducing the remaining balance from the original size of the loan should increase your scores, yes. Much the same way your utilization with cards work, as well as any of the SSL tricks. I'm sure others can provide the thresholds for loans in terms of B/L values.

Re: Score increase for auto loan balance decrease

JoeRockhead — Mon, 28 Jul 2025 13:14:48 GMT

@CreditBob wrote:
Has any other member taken notice that if your original auto loan balance decreases about 30-50%, that your score goes up? I am asking this because it states, that high FICO score achievers have paid an average of 40% of their original loan amount. Has anyone had any experience with this?

@SouthJamaica did an impressive job of tracking the paydown of a car loan and it's influence on scores. If you haven't seen it already, take a trip on the way back machine and check out this thread for more context.