Estimate when points may return?

[EW800]

Hello All,  

My FICO 8 scores have all been in the 727 to 739 range for about the last two years, following a tough recovery.  I know this is about as high as my scores can go until the baddies fall off in about 16 months or so.  

I have not had an installment loan for about four years, which I know has probably hurt my score by maybe a couple of points as far as mix.  I recently took out an auto loan and the new account has posted to my credit reports.  My FICO 8 scores have each dropped about 7-9 points with the addition of the auto installment loan, which at the moment is showing 100% installment utilization.  I am near-certain that AAoA is no issue, as I am still at an average of 14 years.  I suspect that what has hurt me is the 100% installment utilization.  

Within the next 30 days or so I plan to make a good-sized payment, which will bring the Util on this account down to about 85%.  About 30 days after that I should be able to get it down to about 70-75%.  I hope to be below 50% in about a year or slightly less.  

I am just wondering if anyone has installment loan utilization experience that would give me an idea of how long it may take to get these points back, or maybe even a couple more, with having the mix of an open installment loan as well.  Do I need to get the Util of this one account below a certain point, or does installment loan Util mean very little overall?  

Thank you!  

[Anonymous]

Installment util does matter, though not nearly as much as CC util.

There may be a breakpoint at 79% or 69%.  People have tried to figure this out for a while.  My guess is that you'll get those points back then for sure, and that when you get below 9% you'll have get more still.

The good news is that even when you pay the auto loan off, it will be very easy to create an account on your profile that mimics the behavior of an almost entirely paid off installment loan -- and this account will stay open several years and will cost you almost nothing.

[EW800]

Thank you, CreditGuy!

I think I will try to track the point gains as closely as I can, as I being the Util down. I am really hoping that once under 70% or so I will some points come back.

Thanks again!

[Anonymous]

I had only installment loans in my credit file for a couple of years aftrer a disasterous 2010 where mt scores tanked. Here is my experience:

As long as the installment loans are kept current, you can expect a 3-4 point bump as each payment is made, but this is not every month. BUT.... when the installment loan's final payment is made, you will lose 30-45 points. That is what happened to me with a mortgage when I was paying on it and when I paid it off.

[EW800]

Thank you, Flyingifr!