@Red1Blue wrote:I am trying to understand how to interpret this statement on my FICO Report. If I paid down 75% why it is still negative ? What does this message means ?
The remaining balance on your mortgage or non-mortgage installment loans is too high.
"Percentage of principal you have paid down on your open non-mortgage installment loans75%
FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."
I once tested my only installment loan as I paid it down, and kept getting that negative reason code even when I got the balance down to 14%. Only when I got it down to 9% did it finally go away.
The reason codes are there to give you general direction; they're definitely not the "end all." If it were me, I would for sure keep the loan going and let it serve its purpose, especially if it's your only open loan. Just my 2 pennies.
@Red1Blue wrote:
@Anonymous wrote:
@Red1Blue wrote:I am trying to understand how to interpret this statement on my FICO Report. If I paid down 75% why it is still negative ? What does this message means ?
The remaining balance on your mortgage or non-mortgage installment loans is too high.
"Percentage of principal you have paid down on your open non-mortgage installment loans75%
FICO High Achievers have paid down an average of 40% of the principal on their non-mortgage installment loans."
There's multiple utilization thresholds for installments
I think you're progressively "penalized" until its under 9%
Then why is it saying about High FICO Achievers and 40% ?
The "high achiever" stuff is just some stuff they put in to "inform" us.
@Red1Blue wrote:
@SouthJamaica wrote:
I once tested my only installment loan as I paid it down, and kept getting that negative reason code even when I got the balance down to 14%. Only when I got it down to 9% did it finally go away.I beleive there might be a score gain when the balance is under 9% and once the balance is paid off then the scores will drop again correct ?
Yes if it's your only open installment loan.
This is a secured installment loan. It will get paid off in 6 months. What is the benefit of having 6 more monthly payments reporting on the installment account vs. paying it off ? Is there any benefit keeping the account open for 6 months and let the payments post ? Or should I just pay it off and get the secured funds out and use it for some thing else ?
If it's your only open installment loan, and it's paid down to 9% or less, the benefit is 6 months of a score bonus.