topic Confused about my utilization in Understanding FICO® Scoring

Confused about my utilization

Bman70 — Wed, 15 Apr 2015 18:53:47 GMT

So I'm at overall 7% utilization across 6 cards, and Barclay has previously listed "lack of recent installment loan information" as a negative. Since then (Jan) I took out an auto loan. Now my TU updated, about 9 points lower, and the negative listed is "loan balances to loan amounts." Revolving still at 7%. According to all I've read here, loans aren't factored into util, but Barclay is clearly associating loans with util:

Re: Confused about my utilization

Anonymous — Wed, 15 Apr 2015 18:55:59 GMT

Loan balances is a different metric than revolving utilization. That message you're seeing is normal, and you'll see it for the life of the loan.

Re: Confused about my utilization

Bman70 — Wed, 15 Apr 2015 19:06:14 GMT

@Anonymous wrote:
Loan balances is a different metric than revolving utilization. That message you're seeing is normal, and you'll see it for the life of the loan.

The life of the loan? Damn, so a loan is a score negative whether you have one or not, Lol. I would think once you're closer to paid off, it would cease to penalize. I wonder what the proportion tipping points are, - to +, for installment loans.

Re: Confused about my utilization

Anonymous — Wed, 15 Apr 2015 19:18:10 GMT

@Bman70 wrote:
@Anonymous wrote:
Loan balances is a different metric than revolving utilization. That message you're seeing is normal, and you'll see it for the life of the loan.
The life of the loan? Damn, so a loan is a score negative whether you have one or not, Lol. I would think once you're closer to paid off, it would cease to penalize. I wonder what the proportion tipping points are, - to +, for installment loans.

Yes, and no. For Fico 08 and 04 classic scores below 800 it will show that message. Above 800 the message goes away and just says that you are wonderful. Other versions the message is always there. They just need to say something bad.

Re: Confused about my utilization

Anonymous — Wed, 15 Apr 2015 19:22:46 GMT

Like this:

Re: Confused about my utilization

Anonymous — Wed, 15 Apr 2015 19:38:10 GMT

@Bman70 wrote:
@Anonymous wrote:
Loan balances is a different metric than revolving utilization. That message you're seeing is normal, and you'll see it for the life of the loan.
The life of the loan? Damn, so a loan is a score negative whether you have one or not, Lol. I would think once you're closer to paid off, it would cease to penalize. I wonder what the proportion tipping points are, - to +, for installment loans.

I read on here that the key to an auto loan is to take more than you need, meaning hold back some of your down payment and then pay down a chunk of your loan immediately. Of course I just found this site after DH got a new car in Feb.

Re: Confused about my utilization

Anonymous — Wed, 15 Apr 2015 19:42:02 GMT

Sure hope to see this one day! Looks great!