Debt rated "very good" but have been debt-free 10 years plus??

[FICOnewbie2008]

I just got my 3 FICO scores/credit reports.  All were great. However,  I don't understand why, under the category of Debt Amount all three agencies rated me very good."  I am completely debt-free and have been for better than 10 years.  Not even a car payment to make.  Absoluitely nothing. What does it take to improve this rating to GREAT?? Do large companies need to OWE ME major sums of money before my debt amount rating improves??  Seriously though, what do I need to do to improve Debt Amount to the satisfaction of the big 3 to get a better or top rating here?  Thanks for any help you may be able to suggest and for your time and  considerarion.                                                                        

[Skye12329]

Usually util. Needs to show on a cc. 1-9% util reporting is good. If you have a 0% reporting then it doesnt look as good which doesnt make sense to me. Besides the fact lenders what to know you will use their card.

[Anonymous]

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@FICOnewbie2008 wrote:

I just got my 3 FICO scores/credit reports.  All were great. However,  I don't understand why, under the category of Debt Amount all three agencies rated me very good."  I am completely debt-free and have been for better than 10 years.  Not even a car payment to make.  Absoluitely nothing. What does it take to improve this rating to GREAT?? Do large companies need to OWE ME major sums of money before my debt amount rating improves??  Seriously though, what do I need to do to improve Debt Amount to the satisfaction of the big 3 to get a better or top rating here?  Thanks for any help you may be able to suggest and for your time and  considerarion.                                                                        

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From what I've been reading, I think having a very small amount of debt (e.g., $50 on a credit card) reported is optimal.

[xerostatus]

Echoing what has already been said: think about it this way, creditors want/need to see "responsible use of debt", not outright avoidance altogether.

After 10 years being debt-free, then you are suddenly given access to credit, who's to say you have the experience and/or knowledge to handle it responsibly? In a creditor's eyes, you are a wild card, and it can go either way.

[FICOnewbie2008]

Thanks for your insights and for taking time to answer.  Much appreciated.  It makes very much sense in these kinds of situations, but I neglected to let you know that I have had average credit age of 22 years.  I've bought 2-3 cars on 0% for 36 months.  Never, EVER been late on ANY payment nor have I ever missed any payments. There was nothing on my credit report to suggest doing anything to improve the situation. That was the frustrating part: they nit-pick over that and offer no suggestions on how to improve.  Of course I can go buy a car or house on time and will fix the debt amount problem.  Then watch what happens to overall FICO score!  Right!  I would just like for them, or anyone else who has any ideas, to please opine about having such a GOOD problem to solve and how they would approach it while keeping the entire big picture of higher FICO score in mind. Again, thanks for the great reply which certainly would apply normally.  But I do have extensive loans over a lot years and paid back as agreed every time.  Current FICO today is EQ 790,  TU 824, and EX 802.

[FICOnewbie2008]

By the way, I use credit  card liberally for everything since it is COF Venture card paying 2 to 1.  Avereage utilization rate is 1% per month.

[xerostatus]

Honestly, I wouldn't get too caught up in the wording these/any sites use, when it comes to credit. They might as well say, "your debt is rated potato" and that statement would have equal weight to what your credit actually is or isn't.

You have excellent scores, and sounds like your history is also spotless. I'd say, "no harm, no foul". You will have no issue/problem getting credit when or if you need, so again "very good" or "good" or "potato" doesn't make a lick of difference.

[FICOnewbie2008]

That sounds very much on the mark.  I appreciate your time and consideration in answering my question. 

[fused]

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@FICOnewbie2008 wrote:

By the way, I use credit  card liberally for everything since it is COF Venture card paying 2 to 1.  Avereage utilization rate is 1% per month.

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Your average util is 1%, is that on your reports? When do you pay your cards? Before the due date or statement date? CCC's (credit cards companies) report your "statement" balances to the CRA's (credit reporting agencies).

[ddemari]

I too am trying to get my debt level from very good to great. My utilization is also 1% on all my reports. Ive been rebuilding and since march have kept my uti at 1% by not using a card after the due date till the statement cuts. My student loans came out of deferment in june and i am hoping paying them down times 2 just to get my installment uti down from 102 percent quicker. My score has been stuck at 660 to 665 for months.