lowfico767 wrote:
1. I have a personal loan with a 10K balance on it. My limit was 18K and I am paying it down aggressively. WIll this improve my 654 credit score? Should I keep the account open or close it when it's paid off?
2. My only strikes are two 30 day late loans (which I eventually paid off) on my credit score from like 3-5 years ago. One CC and one student. Both only 30 days late. How much does this hurt my score?
3. Will increasing my income improve my credit score?
Welcome to the forums!
1) Is this a traditional loan? If so, paying it off will automatically close it. Loans are factored into installment utilization, but is such a minor part of your score. If a loan, pay as scheduled, unless you are hoping to save on interest. Once paid, it will no longer be factored into your mix of credit if you have no other installment loans (car, SLs, etc.)
If not a loan, but a line-of-credit (LOC), then that very well could be factored into your revolving utilization. If a LOC, paying that off sooner, rather than later, will help your scores.
2) Those 30 days aren't likely impacting your score one bit. Damage was likely severe when the lates first appeared, but over time, the damage lessens w/ most all points returning by the 2 yr mark. I just had a 30 day late come off my report at 6.5 yrs and there was no increase.
3) No, increasing your income won't increase your score. FICO doesn't factor in income into your score as it has no clue on how much you earn. Please someone correct me, but myFICO recently posted an article about Warren Buffet's FICO score. Seems like it was only around 720, and he's one of the richest people in the US.
Message Edited by llecs on 01-30-2009 05:59 PM
