Community Wide Credit Union - Reporting question

[tsk0928]

A friend of mine and her husband have had a number of loans from Community Wide Federal Credit Union over the years. I've stepped in to help them with their credit, and encouraged them to pay off 2 small auto loans from CW, totalling about $5k. I boasted how they should get a nice bump in scores (utilization is their only killer). Well, one of the loans finally updated today, but instead of reporting the zero balance, it just reported as closed with the balance listed that they paid! What the hello?? Scores didn't move an inch, and when the other loan updates, I'm sure it'll do the same thing.

What should I advise them? Should they call the CU?

[Chris679]

Utilization is based on revolving credit not installment loans. Paying off installment loans doesn't really help your FICO score and can sometimes lower it if the loan is helping your mix of credit. They need to pay down credit cards to help utilization.

[tsk0928]

Thanks. Ugh, so much for my advise lol.... I still think it's odd that they reported it that way instead of showing balance zero, closed.