topic Re: impact when reducing installment below 50% in Understanding FICO® Scoring

impact when reducing installment below 50%

Anonymous — Wed, 20 May 2009 15:26:06 GMT

I need to raise my exp score by 18 pts for a mortgage. Auto loan orig amount 11233 current balance 9862, what change should I expect if I pay it down below 50%

Re: impact when reducing installment below 50%

llecs — Wed, 20 May 2009 17:46:50 GMT

Paying down an auto loan like that generally won't improve your score. I just paid mine off w/ a balance of $5k on an org. $25k loan. TU dropped (last installment) and EQ increased, both by single digits.

Your best bet is to pay down any revolving debt. Ideally, you'd want 1/2 of your CCs reporting $0 with the other half reporting a small balance but kept under 9%.

Re: impact when reducing installment below 50%

Anonymous — Wed, 20 May 2009 18:32:15 GMT

I have already done the CC just trying to squeeze another 18 pts on EX. In addition I ws told the other day that opting out of credit offers might raise my score, any thoughts on that?

Re: impact when reducing installment below 50%

llecs — Wed, 20 May 2009 18:45:23 GMT

Opting out on CC offers won't change your FICO score either way.

Do you have any baddies you could go after? If you have any lates, especially within the pasy couple of years, on any current (non-delinquent) and open accounts, then you could call those creditors and ask them for some GW in removing this late or that. Some are more than happy to help. Some aren't. Depending on your payment history, that could help your score. If you have any paid collections, non-medical, then you could GW them and they might remove. That would give you more than 18, I bet.

Re: impact when reducing installment below 50%

smallfry — Wed, 20 May 2009 19:41:35 GMT

Paying off the car won't get you the increase you are looking for I am afraid.

Re: impact when reducing installment below 50%

cobaltnv — Wed, 20 May 2009 20:08:25 GMT

Your car loan is currently at ~88% utilization. I saw a small increase when I got my student loan utilization down below 80%. So while, in general, I agree with the other posters that installment utilization is not too important it can have an effect (small).

I doubt you will get 18 pts but you will likely get a few when your %utilization drops below 85 or 80%.

Re: impact when reducing installment below 50%

Anonymous — Thu, 21 May 2009 04:23:06 GMT

Opting out on existing credit cards? or opting out on receiving cc offers??? There is a big difference.

Opting out on existing credit cards that give u the ultimatum of accepting the increase or closing the card is bad.

Opting out of receiving offers (which I have done) won't do anything.

Also, I agree that paying down the loan won't do much of anything.

Good Luck!