Over 100% utilization how much does it hurt score?

[donkort]

Installment-loan utilization is the only thing holding back my score.  I have no derogatories----and haven't had one for over 7 years.

I have a "boring" report, really.  $67,570 in credit limits.  19 total accounts, the vast majority revolvers.   3% overall revolver utilization, 1 card at 28% utilization.  Auto lease paid as agreed for 2 years.  $65,000 student loan paid as agreed for 14 years.

Average Age of Accounts:  from 7 years 6 months to 8 years 6 months depending on the credit bureau.  Youngest account 1 year, 1 month.

[SouthJamaica]

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@donkort wrote:

According to the simulator, if I pay $4,000 on the student loan, my FICO 8 scores go up to the 820s-830s.  A 30-40 point increase.

I'm theorizing if this is the result of the utilization for this particular item going below 100%.  It's about 120% now.

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The simulator is providing you with pure baloney. Trust me.

[SouthJamaica]

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@donkort wrote:

Installment-loan utilization is the only thing holding back my score.  I have no derogatories----and haven't had one for over 7 years.

I have a "boring" report, really.  $67,570 in credit limits.  19 total accounts, the vast majority revolvers.   3% overall revolver utilization, 1 card at 28% utilization.  Auto lease paid as agreed for 2 years.  $65,000 student loan paid as agreed for 14 years.

Average Age of Accounts:  from 7 years 6 months to 8 years 6 months depending on the credit bureau.  Youngest account 1 year, 1 month.

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Yes you have a great profile, which is why your scores are clustered around 800.

And there is no way you're getting 30-40 points for paying down 4% of your outstanding loans.

[Anonymous]

Your reports somewhat similar to mine. 

Imo you aren't getting a 30 point gain unless you paid off the entire student loan. You didn't lose that much from getting  student loans and if they're over 100% sounds like you're on the path to forgiveness maybe? For whatever reason, the next threshold for the student loans is way down (unlike revolving accounts). We've had this question asked repeatedly and they usually found a better increase by working on the rest of their report. 

As far as your other loan, paying it down will not get the points back from the student loans. So your age (which isn't maxed out, I think), your credit card balance (utilization over 8.9%), and recent HP (which shouldn't affect your score anymore but might still) would give you a good bump if you improved those areas. Trust me, the simulator keeps telling me to get a new card and move some of my balance to it to get magical 15 points. I don't think so, lol! 

My advice would be pay down the credit card with the 28% utilization. Once you get all your cards under 8.9% and maybe even do AZEO, you'll see a nice boost. 

 Good luck no matter which path you chose. Hope this helps. 

[donkort]

If I would have paid my loans on time, every time, I would have had student loan forgiveness now : - (

I was never 90 days late----but I was usually between 30-60 days late until a couple of years ago.  Luckily, I was never reported to the credit bureaus.

[Anonymous]

Yeah, student loans are surrounded by "if only"s because TBH many of us are I'll-informed or too your to understand the impact on our credit score. 

For example, most people don't know they can have their monthly payment amount recalculated early based on a significantly lower paycheck (even if it's not going to be your permanent salary). The new payments will be good for a year. 

Are you going for IDR forgiveness or PSLF?

[donkort]

I am a public-sector employee.

I had Loan Forbearance until about 2009-2010.  I graduated from college in 2006. 

It's remarkable how I didn't know a darn thing about credit until the late 2000s.....when I was already in my late 40's.  This Site  has helped me quite a bit.

[seattletravels]

46% Decrease in Installment UT% = +11 Points