Installments - how and when they help

[Booner72]

My truck loan will be one year the next time it reports.  Twelve full months of "paid as agreed" ---- Has anyone seen score movement for installments aging well?

[fused]

Hi Booner72!

I'm going to move your post to the Understanding FICO Scoring forum.

--fused, myfico moderator

[smallfry]

Don't expect much if any help with your scores.

[Anonymous]

I haven't been able to track or detect any FICO score increases during DH's last auto loan (paid off 50% in 18 months, then closed); or in my student loan (paid off to $1200 over a long long time).  I've watched when it hits what I think may be key percentages or key dollar amounts; and have yet to find any FICO points any time the accounts update their new balances.

[Booner72]

Maybe the only thing it does for the score is AAoA and different types of loans?  Seems like b.s. to me that my best payment, and by far the highest each month, doesn't do any good.

[Anonymous]

Remember that FICO scores are risk estimators.  They calculate the data from gazillions of folks and compare your data to theirs.  So FICO is analyzing my current level of risk based on what is on my report on any given pull.  They are not rewarding good behavior or punishing bad behavior.  They are simply saying, for example, that a 48% balance on my car loan - along with all the other constantly moving data points on my report - doesn't indicate that my risk has changed since my last reported balance on that same car loan because my FICO score has remained constant. 

Installments are part of your credit mix.  IMHO, I believe it's helpful in the long term to have occasional installment loans if they suit your purposes.  That being said, not all FICO High Achievers have open installments, and those that do seemingly report a wide range of remaining balances.

It is beneficial that installment loans are included in FICO scores.  It's part of what they can and do look at as they "run" the algorithms.  And that installment loan shows on our credit reports for a full ten years after its closed, so it's helping out for a good long time.

There are lots of data points that are not included in FICO Scores (thank goodness!), and I suppose we could wish for all of them to be part of our score.  I personally would vote to get a FICO point for every dollar I send in for Federal, State, City and Property Taxes!!!    beamMEup current FICO:  20,000orWhatever +++ and counting 

DD would vote for a FICO point for every dollar spent at the dermatologist! 

DS would go for a FICO point for every dollar spent on transportation. 

Congrats by the way on your excellent score growth!  I would love to be able to say I've put 40 points on my EQ in the last 7 months.  Way to go!!

[Booner72]

Thanks for your post BeamMEup.  I know, am proud of that 40.  Each and every point hard-earned to pay for the mistakes of my assinine self of latter years.  16 more and I'll be even happier.