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Effect of paid-down CU loan on scores?

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Anonymous
Not applicable

Effect of paid-down CU loan on scores?

I do have one more little question and maybe you can help me.  If I am doing this wrong by posting here please 4 give me.  I just paid a hug chunk of a loan with my Credit Union.  It was originally for $1,949.  I have paid all the way down to $614.  Right now Experian is my middle score, would you know how many points you think it might jump.  I need like 15 to 20 to get my approval and not have to go to underwriting.  Thanks for all your help!

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Message Edited by Scamp on 02-04-2009 12:12 PM
Message 1 of 5
4 REPLIES 4
iamrayl
Regular Contributor

Re: Effect of paid-down CU loan on scores?

I don't think you'll see a 15-20 point jump since installment accounts (loans) are not weighted heavily in the FICO formula.  Do you have revolving (credit card) balances?  If you have those and pay those down that's where you'll see the jump in your FICO score.
Message 2 of 5
Anonymous
Not applicable

Re: Effect of paid-down CU loan on scores?

Thank you so much for responding!  This is the weird thing......my equifax states that my credit union account is revolving, my transunion says its some type of checking account-unsecured loan and Experian is an installment account.  So I don't know his this is going to affect my Experian score.  I need it to go at least to 610.  I am at 589 cause its my middle score
Message 3 of 5
haulingthescoreup
Moderator Emerita

Re: Effect of paid-down CU loan on scores?

If Experian is listing it and treating it as an installment account, you probably won't get much joy from them. Smiley Sad Installment util does count, but it's treated separately from revolving util, and it carries much less weight than installment.

Do you still have balances on any credit cards that can be knocked down? You'll get much better bang for the buck that way.

As always, remember to let a $10-$20 balance report on one card, with the others reporting $0 on their statements.

btw, what does EX list as your negatives on screen two of your EX myFICO report? (EX doesn't list positives.) They are listed in order of their impact on your score, with the most important listed first. If you can do anything about any of those negatives, you're more likely to see a score change.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 5
jackg
Established Contributor

Re: Effect of paid-down CU loan on scores?

What is the credit limit on the card? What is your overall utilization?
FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
Message 5 of 5
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