@Anonymous wrote:Is there a score bump when paying down an installment loan below a certain percentage?
It goes by aggregate installment utilization, the aggregate numbers for all of your open installment loans.
If you have only one open loan then your aggregate is the same as your individual loan.
Once your aggregate installment utilization gets down to 9% or less, you can get a big score bump in some of the scoring models, most notably FICO 8 and FICO 9 groups of scores. Sometimes it is accompanied by a smaller score bump in one or two of the older scoring models, such as the mortgage scores.
If your aggregate gets down to zero -- i.e. 100% paid off -- then your scores may take a hit.
