@AyaMai wrote:Lowering the auto loan balance of $18800 does it have any effect on increasing my score. My credit cards utlization of 100K is between 0% - 1%
It might or might not, depending on what other loans you have, if any, and on how much you lower it.
Whats your scores now? If your util is 1%. Doesnt matter what your total LOC is. Whats in the background that might be holding your scores down? Any baddies?
The derogs will work against immediate significant benefit you'd otherwise get from lowering the loan balance.
I wouldn't waste hard pulls applying for anything until you see where your scores are when the 30D late drops.
@AyaMai wrote:
@FireMedic1 wrote:Whats your scores now? If your util is 1%. Doesnt matter what your total LOC is. Whats in the background that might be holding your scores down? Any baddies?
My score dropped from 736 to 680 now back 687 due to a sudden collection report from collection agecny popped on my credit report in March 2022 from an old default credit Capital One card "Original Creditor" $1300 balance which will drop off in September 2023. I have a 30 days late payment of another Capital One Credit Card "Still Have" which will drop next month.
American Express denied me for another card due to one of the reason "Proportion of loan balances to loan amount is too high" 2 credit cards and 3 charge cards were issued to me by them before credit score got hit and the balance of auto loan was higher. I put 30% down payment of the car original price to have a lower monthly car payment. If lowering the balance will have a significant score increase then I will do extra payments but if not, then I have no interest in doing so. Monthy payment is $319.84 No balance on any credit cards, utlization of any card 0% - 1% I pay my charges the next day or before the closing date of my statement.
Balance on Apr 29, 2022 $18,943 7% of this account has been paidOriginal loan amount $20,417
Again.... in order to tell you what effect it would have on your score to lower the auto loan balance, I would need to know (a) what other loans you have, if any, and (b) by how much you would lower the loan. If it's your only open loan, you would receive a significant scoring benefit only when you pay the balance down to below $2040. If it's not your only open installment loan, then I would need to know the loan amounts and the current balances of the others.
@AyaMai wrote:
@SouthJamaica wrote:
@AyaMai wrote:
@FireMedic1 wrote:Whats your scores now? If your util is 1%. Doesnt matter what your total LOC is. Whats in the background that might be holding your scores down? Any baddies?
My score dropped from 736 to 680 now back 687 due to a sudden collection report from collection agecny popped on my credit report in March 2022 from an old default credit Capital One card "Original Creditor" $1300 balance which will drop off in September 2023. I have a 30 days late payment of another Capital One Credit Card "Still Have" which will drop next month.
American Express denied me for another card due to one of the reason "Proportion of loan balances to loan amount is too high" 2 credit cards and 3 charge cards were issued to me by them before credit score got hit and the balance of auto loan was higher. I put 30% down payment of the car original price to have a lower monthly car payment. If lowering the balance will have a significant score increase then I will do extra payments but if not, then I have no interest in doing so. Monthy payment is $319.84 No balance on any credit cards, utlization of any card 0% - 1% I pay my charges the next day or before the closing date of my statement.
Balance on Apr 29, 2022 $18,943 7% of this account has been paidOriginal loan amount $20,417Again.... in order to tell you what effect it would have on your score to lower the auto loan balance, I would need to know (a) what other loans you have, if any, and (b) by how much you would lower the loan. If it's your only open loan, you would receive a significant scoring benefit only when you pay the balance down to below $2040. If it's not your only open installment loan, then I would need to know the loan amounts and the current balances of the others.
$18,943 is my only open installment loan I have at the moment, no credit balance on any of the credit cards, no mortgage, can you please explain why the number $2040, that I would receive a significant scoring benefit. I only got back to applying for credit in October 2020 after having one credit card with $200 CL for 10 years and I paid everything in cash, now I use charge and credit cards for rewards such as cash back or points for any kind of purchases and expenses in my daily life except for rent at the current moment.
When you get the aggregate installment loan utilization percentage below 10% you will probably get a significant score boost in FICO 8's and 9's. The negative reason code you're getting about percentage of loan balances will go away too. Since you only have one $20,400 loan, you would need to get the balance below $2040 to get that boost. There might be slight increases along the way down, but nobody has been able to pin that down.
