SL Questions:
As one pays off the balance of their installment SLs, how does this ratio (i.e % utilization) affect their credit score?
Unlike a credit card, the SL balance is not going to be 'charged up' again (finished degree), and such a high amount it will not be PIF unless one hits LOTTO.
Payments can stretch out for 10+ years. I know a long SL tradeline will be beneficial to credit score due to age, but how does credit score reflect actual balance for a consolidation loan over $50,000? How will FICO model adjust if all other credit information more or less remained consistent? Does amount also affect credit score (i.e SL debt of $15,000 vs. SL debt of $75,000)?
For example: estimate ~$3000/year payoff -
{estimated balances}
Deferment: What is credit score?
Year 1: Balance $48,434 What is credit score?
Year 2: Balance $45,879
Year 3: Balance $43,365
Year 4: Balance $41,234 What is credit score?
Year 5: Balance $38,432
Year 6: Balance $35,456
Year 7: Balance $32,122 What is credit score?
Thanks!
