FICO scoring question.....is this possible?

[veracious]

Another member asked a similar question about installment loan balance payments.

Why does installment loan pymts

  My question is: with 0% utilization or no open revolving lines of credit  showing on your report,

is it possible to see a score bump  from one  monthly payment on the installment loan?  Would

someone receive a score bump with each subsequent payment each month?

Since My FICO gives a possible reason for a score increse when:_____ "The balances on one or more

of your credit accounts decreased. In general, less debt is better for your score"

Is my reasoning not correct?   Please explain.

   Thanks

[Anonymous]

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@veracious wrote:

My question is: with 0% utilization or no open revolving lines of credit  showing on your report,

is it possible to see a score bump  from one  monthly payment on the installment loan? 

Would someone receive a score bump with each subsequent payment each month?

I have not seen a score bump when making payments on my student loans over the years, or when making my first or subsequent payments on my mortgage, or car loans.  Further, I have yet to see a score bump when paying any of these down to 50%, or off in full.  YMMV.

Remember, FICO scores installment much differently than revolving.

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[veracious]

Thanks,beamMEup

Wellll...I dunno. It happened to me this month.

I got a small bump from the above scenario.

Shhh,let's keep it a secret between you and me.

Could've been a fluke.

veracious

[Anonymous]

Not to bea contrarian but when I applied for my last car loan i instantly lost 20 points on TU and EQ.  after makinga payment I made back the 20 points on TU and actually went higher on EQ.

it really depends on your mix of credit and there are probably several other variables that come into play as well.

[RobertEG]

FICO does not have a direct scoring portion, to my knowledge, that rewards you directly for each timely monthly payment.  It is expected.

IF you miss a payment, it will certain be posted as a derog with immediate impact, but making a payment will have little or no immediate impact.

How FICO rewards you for making timely monthly payments is by reducing your % util, and allowing the account to continue as an account in good standing, and thus be retained in your CR for many years to come. 

Installment loan % util is itself a very small factor in FICO scoring, so making continued timely payments on installment loans has very little impact, even over an extended period of time, in boosting your score. 

The quick down then up reported by Geronimo is almost certainly a result of factors other than just making one payment.

[Anonymous]

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@RobertEG wrote:

Installment loan % util is itself a very small factor in FICO scoring, so making continued timely payments on installment loans has very little impact, even over an extended period of time, in boosting your score. 

The quick down then up reported by Geronimo is almost certainly a result of factors other than just making one payment.

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True!