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Installment Loan Utilization

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Anonymous
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Installment Loan Utilization

Does having a closed installment loan w/ a balance affect your "installment" utilization?

 

Message 1 of 3
2 REPLIES 2
Anonymous
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Re: Installment Loan Utilization

Unlike a CC, the auto loan will continue to show an "original balance" and current balance even after the loan is closed, whereas a CC if closed will have a zero CL with an existing balance.

 

So, no, it will not affect the ratios of your loan.  It will reflect poorly, though, to any LO review.  And if lates or charge off get reported to the account, or it goes to collection, then utilization ratios will be the last of your CR FICO worries.

 

Out of curiousity, why was this account closed with a balance?

Message 2 of 3
Anonymous
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Re: Installment Loan Utilization

The account isn't closed. It's being reported to TU as closed.  There aren't any lates, its pays as agreed.  I've disputed w/ TU and they have "verified" the information.  Its a SL.  It isn't being reported as an open account on EQ and EX. 

 

Do you think its something that I need to address or don't worry about it?

 

F.Y.I, I do have another installment loan, an auto loan.  Is this "closed" status really affecting me?

Message 3 of 3
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