How are installment accounts factored into your credit score?

[getnthere]

I don't understand: Does paying down your loan (mortgage, student loan, etc) help your utilization, since they don't have credit limits.  Or how else are they included in your credit score, and how does paying them down faster benefit you?

[marty56]

IMHO paying down util on an installment loan has no affect on your FICO score.  The fact that you have one would help your credit mix and thus raise your score.

For me, the primary goal of paying down my mortgage and auto loan is financial and I dont care what happens to my FICO score as a result.

Message Edited by marty56 on 07-28-2009 10:04 AM

[MarineVietVet]

---

@marty56 wrote:

IMHO paying down util on an installment loan has no affect on your FICO score.  The fact that you have one would help your credit mix and thus raise your score.

For me, the primary goal of paying down my mortgage and auto loan is financial and I dont care what happens to my FICO score as a result.

Message Edited by marty56 on 07-28-2009 10:04 AM

---

I couldn't agree more. My absolute #1 goal is to be debt free. If that hurts my score by a few points so be it. I consider it silly to keep debt for a little bit higher FICO score. But even after the debts are all paid I will continue to keep all my cards active. I'm not THAT silly!!! 

7/09
TU-742
EQ-779

Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".