@Anonymous wrote:
SJ Rather than a ratio of loans to total accounts, we need the ratio of loans to revolvers or revolvers to loans. And like I said I don’t know if it’s open or closed, so I guess all open revolvers to all open loans and all closed revolvers to all closed loans.
Yeah, you’re right that sucks we don’t have daily monitoring for EQ. Do you have anything else going on around that time? I wonder if we may get lucky enough for a MF alert to give a clue?
You could have easily done the math yourself from the numbers I gave you 
And I can't for the life of me see why closed loans to closed revolvers is of interest to you.
But here's what you asked for:
Open loans to open revolvers: Before 6:31 (19.3%) After 1:31 (3.2%)
Closed loans to closed revolvers: Before: 6:28 (21.4%) After 11:28 (39.2%)
I won't know with precision what effect the change will have had on EX, and it will be even less precise as to EQ and TU. But I'll probably have a rough idea. No the MF alerts will tell me little, because they don't deal with the installment loans, and they're not timely. All they will really tell me pertinent to this issue is when my score moves. The best way for me to tell will be to see what happens in EX during the 9 or 10 day period during which I will see the effect or absence of effect of the peeling away of the closed loans, and then to pull my 3-B report and try to gauge if the other 2 bureaus reacted in similar fashion.
Even if I get a noticeable score move from losing 5 out of 6 open loans, I may not be able to sort out the reasons for it. I was thinking of 2 possible factors -- a diminution in the ratio of open loans to open revolvers as a negative, or a diminution of the number of accounts with balance as a positive. But other folks have pointed out some other possible reasons for a score change stemming from the account reduction.
But I'll report on it, and maybe we'll be able to sort it out.
@Thomas_Thumb wrote:The change in # of accounts with a balance is significant. That should be a positive.
However, if your remaining open loan is quite young (say under 6 months age) and one of the recently closed loans was significantly older (say over 2 years age) that could have a negative impact. One of the Fico scoring factors is AAoA/AoOA of installment loans specific to open accounts only.
I wish I'd known this before. I could easily have kept the oldest one open.
OK so first possible result came in today, when 1 of the 5 closed loans reported.
EX 2 added 6 points, no change in negative reason codes.
EX 8 no change.
(There were 2 revolving utilization improvements which could have contributed to, or caused, the increase. 1 account went from > 50% (50.1%) to < 50% (46.9%), 1 went from 68% to 53%, rounded aggregate went from 30% to 29%. But typically my EX FICO 2 is very stuck up and doesn't budge over such trivialities ).
Interestingly, EX FICO 2 gained 5 points today as another of the loans fell off. No change in reason codes.
So reducing open installment loans from 6 to 4 resulted in +11 in my usually unmovable FICO 2. Today's score is my all time FICO 2 high.
FICO 8 didn't move.
(Other activity, unlikely to have moved score: one account which had previously posted a $95 balance posted zero, and another account increased its utilization)
It's starting to look to me like dropping installment loans helps mortgage scores. I'm going to keep this in mind for when we have a poster with a slew of old student loans who's looking to bolster his or her mortgage scores. Even if it depresses his or her FICO 8 scores because of an increase in installment loan utilization percentage, it might be worth it for the mortgage scores, to pay off some of the loans.
@SouthJamaica wrote:OK so first possible result came in today, when 1 of the 5 closed loans reported.
EX 2 added 6 points, no change in negative reason codes.
EX 8 no change.
(There were 2 revolving utilization improvements which could have contributed to, or caused, the increase. 1 account went from > 50% (50.1%) to < 50% (46.9%), 1 went from 68% to 53%, rounded aggregate went from 30% to 29%. But typically my EX FICO 2 is very stuck up and doesn't budge over such trivialities
Did your oldest open loan (2 years) report as closed for the above or was it still reporting as open?
@Anonymous wrote:I mean that sort of makes sense to me. If someone is going for another loan, having many open current loans (as opposed to just 1) to me makes it feel like that person should be considered more of a risk. Even removing manual DTI calculating from the equation, just having to make more installment loan payments monthly can add additional risk, so it wouldn't surprise me if the mortgage models took this into consideration.
Methinks you give them too much credit