Showing results for 
Search instead for 
Did you mean: 

How to maximize my installment loans

Regular Contributor

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

12/02/2014 TU 521 EQ 522 EX 529
5/15/2016 TU 764 EQ 747 EX 734

Cap1QS $4000,BOA Rewards $1200,DiscIt $2300,Citi DC $2600,Chase freedom $6000,AMZ $6000,WAL $6000,PAYpal $4000,JREW $8250 $750,Sam's $8000
In the garden until 2018
Message 1 of 4
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
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.

TCL: $306,100Utiliz: 6%AAoA: 5yrs 2mOther: Lease, Loan, *No MortgageCollections-Lates-BK's: 0

LWS-35k | BOA-50k | AMX-32.4k | DISC-33.6k | ALNT-25k | NFCU-33k | BARC-15k | BBUY-12k | CSE-10k | CP1-10k | CITI-11.7k | PF-38.4k

Message 3 of 4
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
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.