@credit_endurance wrote:I just wanted to share a data point regarding a couple of installment loans the I had recently taken out.
I have taken out a Alliant CU SSL $500 a couple of years ago in which I immediately paid down to $44 to receive the full impact on fico. So benefiting off of the sucess of that loan I was thinking that with the circumstances of the economy and wanting a plan moving forward I originally was thinking of taking out 1 installment loan with my local CU but then had a idea to apply for PenFed loan and would only accept if given a good rate. So last month accepted both loans. No sure how this was going to impact Fico scoring. 🙁
But here was my results:
1) First loan from local credit union hit first. This thing reported in only 1 day!!! I was furious about that cause it put a monkey wrench in current spree planning at the time. 😆😂. All three credit bureaus lost between 25- 31 points with EXP losing the most.
2) PenFed loan took approximately 3 weeks to report to ALL three bureaus total damage across all bureaus 1-2 point loss. I am very surprised at the result of the 2nd loan as I anticipated a pretty disastrous outcome. Gives me an opportunity to strategize paying down each loan between 89.9-69.9-49.9 and what will be most beneficial at this point.
Now to figure out when to pay off the Alliant SSL only $37.00 owed 🤔
Will it affect my Fico scoring if I actually pay off the SSL loan?
Your FICO 8 scores are affected by the aggregate installment utilization percentage, not by individual loans. So leave your Alliant SSL alone, you may need it if you decide to pay off the other two at some point. Just get the aggregate of your installment utilization back down to 9% and you'll be back in the sweet spot.
@credit_endurance wrote:
@SouthJamaica wrote:
@credit_endurance wrote:I just wanted to share a data point regarding a couple of installment loans the I had recently taken out.
I have taken out a Alliant CU SSL $500 a couple of years ago in which I immediately paid down to $44 to receive the full impact on fico. So benefiting off of the sucess of that loan I was thinking that with the circumstances of the economy and wanting a plan moving forward I originally was thinking of taking out 1 installment loan with my local CU but then had a idea to apply for PenFed loan and would only accept if given a good rate. So last month accepted both loans. No sure how this was going to impact Fico scoring. 🙁
But here was my results:
1) First loan from local credit union hit first. This thing reported in only 1 day!!! I was furious about that cause it put a monkey wrench in current spree planning at the time. 😆😂. All three credit bureaus lost between 25- 31 points with EXP losing the most.
2) PenFed loan took approximately 3 weeks to report to ALL three bureaus total damage across all bureaus 1-2 point loss. I am very surprised at the result of the 2nd loan as I anticipated a pretty disastrous outcome. Gives me an opportunity to strategize paying down each loan between 89.9-69.9-49.9 and what will be most beneficial at this point.
Now to figure out when to pay off the Alliant SSL only $37.00 owed 🤔
Will it affect my Fico scoring if I actually pay off the SSL loan?
Your FICO 8 scores are affected by the aggregate installment utilization percentage, not by individual loans. So leave your Alliant SSL alone, you may need it if you decide to pay off the other two at some point. Just get the aggregate of your installment utilization back down to 9% and you'll be back in the sweet spot.
Thanks @SouthJamaica for chiming in. Forgot to mention that both loans are for $20k apiece. My thinking was that the overall amount of the loans would affect Fico scoring like revolving debt and tank scores even further but that wasn't the case. I will now concentrate on the "aggregate" part of scoring and keep that SSL intake.
Yeah, well now you know why the 2nd loan had major effect but the 3rd had no effect. The 2nd loan dramatically altered your aggregate installment utilization percentage; the 3rd didn't change it much if at all.
@credit_endurance wrote:@SouthJamaica Not sure if you have any knowledge on this but, I will throw it at you anyways 😃
I did notice that the loan acquired through the my local CU has it listed on the credit report as "Note Loan" I haven't seen this listed on any report in the past. Is there a difference between a note loan and unsecured loan? And would this note loan report more negatively than an unsecured?
I've never encountered that terminology. I'm sure it reports like any other installment loan that's not a car loan or a mortgage.