Specifics and Rationalization

[MeCasa]

If you are looking for Specifics and/or Rationalizations the credit business is not where you go. When I first came here I was asking questions which the answers should be almost mathamatical. Once you factor in all the different score models of all the differing scoring software you soon realize that companies do what the want and the scores are no more than guradrails set by those specific companies.

That said, I still have questions  :-) Are the car loans & unsecured monthly loans under revolving? What are the catagories and where are they on this sheet? If they are part of revolving than how do they count them? If the original loan was 40 and you still owe 10 is that 25% Utilation.

Thanks

[pizzadude]

Car loans would not show under revolving credit, they are always classified as installment loans.

Most personal / unsecured loans would fall under installment although some might be revolving depending on the lender.

[GZG]

---

@MeCasa wrote:

That said, I still have questions  :-) Are the car loans & unsecured monthly loans under revolving? What are the catagories and where are they on this sheet? If they are part of revolving than how do they count them? If the original loan was 40 and you still owe 10 is that 25% Utilation.

---

vehicle loans and personal loans are installment credit, not revolving credit, they don't show up anywhere on that page from discover. 

their impact of the loans that you can see on that screen, is in the number of the accounts, your credit age and in only in your score based on their payment history and the percentage you've paid back both individually and together in the aggregate. 

work on getting the loans paid down, when you pay them down enough, FICO score will go up. If you pay all of your loans in full and you no longer have any loans, your FICO score will go down.

[MeCasa]

I've pais down all credit cards to below 30%. I have two unsecured loans and a car note. I have $14,000 left on a $20,000 note, $5,000 left on a $20,000 note and a car loan with $10,000 left on a $25,000 note.

I can pay the credit cards down more or pay off the $5,000 note. Which would be better?

Thank you

[FlaDude]

I don't know exactly how much (if any) impact UTI has on car loans and/or mortgages, but it is far less than revolving UTI. I have a fairly new mortgage at 98% utilization and my FICO 8s are all in the 810s and 820s. My scores were much lower when I had credit cards at those levels. 

[pizzadude]

If you're looking to bump your FICO scores then I'd apply the funds towards your revolving utilization as this weighs more heavily. 

[JoeRockhead]

Unless you're down to one installment loan (which you're not) and it gets paid down to under 9% of the original loan amount, you'll see better score gains by reducing your revolving credit card utilization. Optimum scores will come with only one card reporting a small balance every month.

[MeCasa]

That's why I say there is no rationalization in this.I would think that monthly notes would weigh heavily but what do I know  :-)

I'm trying to raise my score so that I can get a $40,000 unsecured. I went from 60% utilization and I ought to be less than 25% in a couple of weeks as banks report. I was thinking paying the $5000 would help but since ya'll don't think so I'll keep on kicking down the credit cards.

I figure 780 or so should get me my loan.

thanks

[SouthJamaica]

---

@MeCasa wrote:

If you are looking for Specifics and/or Rationalizations the credit business is not where you go. When I first came here I was asking questions which the answers should be almost mathamatical. Once you factor in all the different score models of all the differing scoring software you soon realize that companies do what the want and the scores are no more than guradrails set by those specific companies.

That said, I still have questions  :-) Are the car loans & unsecured monthly loans under revolving?

No, installment loans are separate. Revolving personal lines of credit are under revolving.

What are the catagories and where are they on this sheet?

On the screenshot you presented, the revolving accounts are referenced in the 54% revolving utilization.

Both revolving and installment accounts would be included in the 20 total accounts box.

The If they are part of revolving than how do they count them?

Aggregate revolving utilization is one separate metric.

Aggregate installment utilization is a separate metric. It's not referenced in your screenshot.

If the original loan was 40 and you still owe 10 is that 25% Utilation.

Yes that's 25% installment utilization.

Thanks

---

[SouthJamaica]

---

@MeCasa wrote:

I've pais down all credit cards to below 30%. I have two unsecured loans and a car note. I have $14,000 left on a $20,000 note, $5,000 left on a $20,000 note and a car loan with $10,000 left on a $25,000 note.

I can pay the credit cards down more or pay off the $5,000 note. Which would be better?

Thank you

---

It's better for your scoring to concentrate on the revolvers. So use the $5000 to pay down revolving accounts.