@Anonymous wrote:
I currently have an autoloan which I owe 7k on, I'm hopefully buying a new car and giving my old car to a family member. The car is upside down by a little under 2k and I want to pass the car down to a family member. So I was going to put 2k down in the car before I passed it on. Would putting 2k towards the principal of that loan lower my score?
Thanks!
Hello there.
I would expect little or no change in scores.
Although installment loan utilization is factored into scoring it's such a small calculation (compared to revolving credit utilization) it can be virtually ignored.
