@tschaet wrote:Hmm, while looking at my FICO scores on CreditCheckTotal, it lists this:
"FICO® Scores weigh the amounts paid down and balances of mortgage and non-mortgage installment loans (such as auto or student loans) against the original loan amounts. In general, when an installment loan is first obtained the balance is high. As the loan is paid down, the balance decreases. As installment loan balances decrease, they have less impact on a FICO® Score. Having a low installment loan balance to loan amount ratio is considered slightly less risky than having a 0% installment loan ratio. Consolidating or moving debt from one account to another will usually not help a FICO® Score since the same total amount is owed and the score may go down due to opening a new account."
It lists "Amount of Debt" as 30% of your FICO8 score. When I click on the accounts it is mentioning, it takes me to my credit cards and also my student loans. My student loans are on IBR plans to be forgiven after 20+ years and my IBR payment is less than the interest, therefore I will never really touch the principal....
Yeah, my student loans are on an IBR plan. My monthly payment per the IBR plan is less than the interest accrued, therefore my student loans will continuously increase until they are "forgiven". When I look at my Credit Check Total report, it lists one of the score impactors as being:
"LOAN BALANCES:
The remaining balance on your mortgage or non-mortgage installment loans is relatively high.
Percentage of principal you have paid down on your open non-mortgage installment loans
0%
FICO® Scores weigh the amounts paid down and balances of mortgage and non-mortgage installment loans (such as auto or student loans) against the original loan amounts. In general, when an installment loan is first obtained the balance is high. As the loan is paid down, the balance decreases. As installment loan balances decrease, they have less impact on a FICO® Score. Having a low installment loan balance to loan amount ratio is considered slightly less risky than having a 0% installment loan ratio. Consolidating or moving debt from one account to another will usually not help a FICO® Score since the same total amount is owed and the score may go down due to opening a new account.
FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."
$1700
$2000
