Owing more money on a loan might not hurt your credit scores a lot, although it can impact your creditworthiness in other ways.
With credit cards, the portion of your credit limit that you’re using is an important factor in your credit scores. The scores compare your reported credit card balance to the card’s limit to determine your “utilization rate.” Lower utilization (i.e., using less credit) is better for your scores.
However, credit utilization rates aren’t negatively impacted by installment accounts. The amount you owe relative to the initial loan amount can still impact your scores, but it’s generally a much smaller impact than your revolving accounts’ utilization.
Credit scores aside, your monthly debt payments can impact your debt-to-income ratio, which creditors may consider when reviewing your application for a new account. Owing more money each month may hurt your creditworthiness even if it doesn’t hurt your scores much.