A good bit you are going to want to get under 60% first then under 50% then under 30%, if you can stay under 30 ideally under 10% that is GREAT but since it is loan and not revolving the faster you pay it off the better so if you have interest you dont pay to much based off your high utl
I guess those are more in reference to adding to a profile rather than Damaging the score?! I guess I should have asked if OP is intending to add anything or apply for anything in the near future with it being that high?!
@donkort wrote:My student loans are over 100% utlization----but my car loan is about 33% utilization, since I paid off two-thirds of the loan. So my overall installment-loan utilization is 64%. I have $65,000 in student loans. If I were to pay off $4,000, I would get about a 30-point score bump. I believe this is because paying off the $4,000 would bring my utilization down below 100%.
As for revolving credit, there's thresholds at 88.9%, 68.9%, 48.9%, 28.9% (a biggie), and 8.9% (the biggest of the biggies). There's also a smaller one at 5.9%, I believe (though that hasn't been documented).
Sorry but I don't understand what you just said. I think there's a typo in there somewhere.
Certainly, if your aggregate installment utilization is 64%, against a total of original loans of $100k, your paying $4k -- going from 64% to 60% -- isn't going to give you a 30 point bump. More likely it wouldn't get you any points at all.
@Anonymous wrote:It doesn't matter if they are over. Once it's at that point you maxed out any penalty. Also, you won't get back any points until you've paid off a significant percentage of your loans.
Most people ask this in an attempt to focus on it to raise your score. Since it's a student loan, you'd instead see more of a point gain from focusing on other areas imo, such as credit card utilization or just letting your accounts age.
It's not uncommon to be over 100% especially on IDR with forgiveness. I wouldn't worry about it. 🙂
+1
I wouldn't necessarily trust the accuracy of the simulator. Generally, loan utilization is not a major factor in your score. New accounts, revolving utilization, inquiries, derogatory accounts, length of credit, etc. all have much higher impact. Most people dont see an impact for loan ut% until it gets ~8%.
However, if loan ut% is the only negative factor impacting your score - which I'm assuming based on the simulator saying you'll be in the 820s by paying 4k on your loans - it's entirely possible individual loan ut% could have a material impact for you.
