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How to maximize my installment loans

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Anonymous
Not applicable

How to maximize my installment loans

I have a $1500 person loan for 3 years should I pay it below 80% for best score then just pay it for the rest of the term. I also have a $13, 000 car loan


Message 1 of 4
3 REPLIES 3
takeshi74
Senior Contributor

Re: How to maximize my installment loans

You want a low balance to loan ratio and at least 1 active installment.  Impact is going to be much smaller than revolving utilization though.

Message 2 of 4
RonM21
Valued Contributor

Re: How to maximize my installment loans

I've seen several threads that more or less say to get the loan down below a certain threshold to maximize scoring. It may have even been as much as 90% paid off.


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 3 of 4
Revelate
Moderator Emeritus

Re: How to maximize my installment loans

Installment utilization is aggregate, simply paying off 95% of one loan won't result in a score shift.  With the auto loan in play, unless you can nearly write a check for the car, reindeer games with the $1500 loan won't do anything FICO wise though it would save you some amount of interest.

 

Under 10% (maybe under 9% depending how things get rounded) is the sweet spot when it comes to installment utilization.




        
Message 4 of 4
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