I just checked my most recent FICO score and I was shocked when I saw that my score dropped from 788 to 729. The main "key factor" that was given to me for my score dropping was because "Proportion of loan balances to loan amounts is too high: FICO Scores weigh the balances of mortgage and non-mortgage installment loans (such as auto or student loans) against the original loan amounts shown on a person’s credit report. Your score was impacted because your proportion of installment loan balances to the original loan amounts is too high." Can someone please explain this to me in a way i can understand? Why would my score suffer if I make a payment on time? Should I have paid more than the minimum amount that was required of me (which is currently $275/month)? Also, will this continue every month I make a payment? Is this normal for first time payments of student loans? I have not deferred my loan payments ever and I chose the standard payment plan for paying off my loans. Please help guys!
Submitted January 12, 2017 at 02:10AM by kosh589 http://ift.tt/2iiZjij