I've been rebuilding my credit for the past 6 months with much success thanks to these forums.
I have a school loan that was in forbearance, but no longer.
Current Balance: $15k
Original Balance: $13.5k
My reports are showing both numbers. Are my FICO scores being severely impacted by this? I was told no, but wanted to be sure by asking the forum. Is this the same as having the same balances on a Credit Card and having a +100% utilization rate?
Thanks in advance?
Util does not come into play on this because it is not a revolving account.
Thanks Shogun. And thanks for your help with my rebuilding effort. I read all of your responses to other's posts, which I use to educate myself on my situation.
Utilization of installment loans is factored into your score but not near as much as revolving.
Amount of debts owed is 30% of your score and installment loans are included in that. If you owe more than the original balance it may indicate you are unable to manage debt.
thanks for the response.
my next question would be.
If this is my only debt and have no other baddies on my credit report. If I were to pay $10k of the $15 loan tomorrow, I should see a score increase of some sort they next time my loan reports.....correct?
If you could pay that, and not pay interest. It's a win/win!