@Anonymous wrote:What are the break points on paying down an car loan, installment or personal loan? I recall in the past getting an improvement in my credit score when I paid down a car loan at a certain point or two and can't recall for other loan types.
Does anyone recall? I'm quite certain there was a break point for car loans, not so certain for installment or personal loans. Thanks
The only serious breakpoint in installment utilization of which I am aware is getting your aggregate utilization down to 9% or less. That will often get you a lot of points in your FICO 8 scores.
@kr43002 wrote:There are certain spots on your loan util that you get a bump for.
I forget all of them but its like 8.9% 28.9% 48.9%, I could be off on these numbers but I know for sure that the 8.9% is what is recomended when doing the SSL technique.
I disagree with this. It doesn't have to do with individual accounts, it's aggregate installment utilization. And I have never detected any discernible breakpoint other than 9%.
@Anonymous wrote:What are the break points on paying down an car loan, installment or personal loan? I recall in the past getting an improvement in my credit score when I paid down a car loan at a certain point or two and can't recall for other loan types.
Does anyone recall? I'm quite certain there was a break point for car loans, not so certain for installment or personal loans. Thanks
This is one topic where the actual thresholds for scoring just haven't been tested well, and it seems to vary across scorecards and CRAs as well. What we 'know' on this topic is that installment utilization is calculated as an aggregate meaning the total balances of all your loans divided by the total original amounts of all your loans. There are largely untested theories that there may be some individual installment thresholds specific to certain types of loans (auto, mortgage, etc.) that are different across the CRAs as well. Again, this is largely untested and unconfirmed. The biggest scoring threshold for installment utilization occurs at 9% (meaning the utilization must be under 9.5% to score as 9%). There have been reports of score increases from 15-35 points at this threshold depending on scorecard. Other reports of smaller thresholds are believed to be around 88% and 65%, but YMMV based on scorecard. You can search threads on this site that will give you a whole other set of 'scoring' thresholds, but these just aren't tested or confirmed well.
@Gladius wrote:
@SouthJamaica wrote:
@kr43002 wrote:There are certain spots on your loan util that you get a bump for.
I forget all of them but its like 8.9% 28.9% 48.9%, I could be off on these numbers but I know for sure that the 8.9% is what is recomended when doing the SSL technique.
I disagree with this. It doesn't have to do with individual accounts, it's aggregate installment utilization. And I have never detected any discernible breakpoint other than 9%.
So are you saying no score changes until the balance is below 9%?!
No, I'm just saying that if there were any changes they were so slight that I was unable to detect them.
@SouthJamaica wrote:
@Gladius wrote:
@SouthJamaica wrote:
@kr43002 wrote:There are certain spots on your loan util that you get a bump for.
I forget all of them but its like 8.9% 28.9% 48.9%, I could be off on these numbers but I know for sure that the 8.9% is what is recomended when doing the SSL technique.
I disagree with this. It doesn't have to do with individual accounts, it's aggregate installment utilization. And I have never detected any discernible breakpoint other than 9%.
So are you saying no score changes until the balance is below 9%?!
No, I'm just saying that if there were any changes they were so slight that I was unable to detect them.
My TU FICO8 score ranges from 824 to 827 in last 14 months, during that time my one and only installment/auto loan went from 65% down to 38%, so if it did cross any scorable threshold(s)? It wasn't noticeable at least to my own profile.
@stw715 wrote:
@SouthJamaica wrote:
@Gladius wrote:
@SouthJamaica wrote:
@kr43002 wrote:There are certain spots on your loan util that you get a bump for.
I forget all of them but its like 8.9% 28.9% 48.9%, I could be off on these numbers but I know for sure that the 8.9% is what is recomended when doing the SSL technique.
I disagree with this. It doesn't have to do with individual accounts, it's aggregate installment utilization. And I have never detected any discernible breakpoint other than 9%.
So are you saying no score changes until the balance is below 9%?!
No, I'm just saying that if there were any changes they were so slight that I was unable to detect them.
My TU FICO8 score ranges from 824 to 827 in last 14 months, during that time my one and only installment/auto loan went from 65% down to 38%, so if it did cross any scorable threshold(s)? It wasn't noticeable at least to my own profile.
That's my experience as well. Only when I got it down to 9% did something noticeable happen.