Not enough balance paid down over time on installment accounts

VantageScore code numbers

Code numbers can differ by bureau and score version. The wording of the statement is what to match.

What puts this reason on your score

VantageScore's explanation says the amount paid down on your open installment accounts is low. A loan opened six months ago has paid down only a small slice by design. A $20,000 personal loan with $18,500 left has paid down 7.5%.

VantageScore 3.0 has the same idea at code 74, so this one isn't new with 4.0. Deferred student loans, and loans where unpaid interest gets added to the balance, can keep the paid-down share low even after years.

What to check on your credit report

• The original amount and current balance on each installment loan
• Loans that still show a balance after you paid them off
• Deferred loans whose balance has grown

What you can do about it

• Keep making scheduled payments. The share improves with every one.
• Hold off on new installment loans you don't need before an application.
• Extra principal payments shrink the balance faster, if your budget allows.

How soon a change can show

Each monthly payment the lender reports nudges the paid-down share up. Movement is slow on a new loan and quicker in the later years of a loan.

If you are applying for a mortgage

A new car or personal loan just before a mortgage application brings an inquiry, a new account and a balance that's barely paid down. If you can wait, take on new loans after closing.

Guides that go deeper

• Why paying off a loan can drop your score (and why it's still fine)You made the last car payment and your score fell. What changed on your report, how long the dip lasts, and when the timing of a payoff matters.
• The score math of paying off cards with a personal loanA personal loan can drop card utilization to near zero. How it compares with a balance transfer and home equity on cost and on your credit report.
• How much credit mix counts in your scoreCredit mix is 10% of a FICO Score, and FICO says you don't need one of each account type. The math on taking a loan just to improve mix rarely works.
• What your credit score reason codes are telling youReason codes list what held your score back the most, in order. What the common ones mean, which you can act on, and which to leave alone.