Does reducing auto loan payment by 20% improve credit score

[NRB525]

Point of clarification, did the new auto loan already report the full $27k balance? Or you pre-paid it down to ~$22k?

Because the initial decrease was from removing the old auto loan, correct?

[Thomas_Thumb]

Recent data from CAPTOOL suggests there is an installment loan threshold at 70%. If so, you might need to pay ust over $8100 (remaining balance below $18,900) for a score bump.

[Anonymous]

That is correct - initial drop was because of paying the old car loan and getting a new auto loan (balance was 27K). I paid ~5,000$ to bring the balance down to 22,000$ that is what is current report says(generated on 10/4/2015).

   FYI, I did talk to customer care rep @ experian and she said - it usually takes 6 months for any installment loan to have positive effect on report. 

[Thomas_Thumb]

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@Anonymous wrote:

That is correct - initial drop was because of paying the old car loan and getting a new auto loan (balance was 27K). I paid ~5,000$ to bring the balance down to 22,000$ that is what is current report says(generated on 10/4/2015).

@   FYI, I did talk to customer care rep @ experian and she said - it usually takes 6 months for any installment loan to have positive effect on report. 

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Key word here is "usually" not "always". Why - because usually borrowers do not reduce balance enough to drop below a thresold. So the 1st positive impact may be age related not balance related.

[NRB525]

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@Anonymous wrote:

That is correct - initial drop was because of paying the old car loan and getting a new auto loan (balance was 27K). I paid ~5,000$ to bring the balance down to 22,000$ that is what is current report says(generated on 10/4/2015).

@   FYI, I did talk to customer care rep @ experian and she said - it usually takes 6 months for any installment loan to have positive effect on report. 

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And this $27k actually reported earlier? Because I thought you just got the new loan, like a month ago, and it often takes a while for such a new loan to actually make it's way onto your credit report.

[Anonymous]

Actually I meant Auto Loan Refinance not New Auto Loan.

Yes, that is true. I get an update of my score on 4th of every month, I applied for loan on ~10-12 and it got reported in the following 4th. 

     My Car Loan is with Digital Federal Credit Union(DCU).