New Loan from credit union

[My_dog_FICO]

jackg - sorry if I came on strong - not my intent - please don't be offended

Experts, tell me if I'm wrong, but installment loans aren't calculated as part of your utility, only revolving debt.  Installment loan balances and payment amounts are used by lenders in calculating DTI ratio though.  Meaning, having an installment loan should not negatively affect his FICO other than the hard inquiry.

Again, if I'm wrong, I'll accept that and change my perspective, but I don't think I am at this point.

[LuvsRetro]

Hey FYI:

I was curious after the last 2 posts regarding uti and installment loans. 

Well, I just looked at my EQ report and my installment loan is definitely figured in the uti percentage. 

If that helps on the debate--

Maybe someone else with an installment loan can check to see if it's included in their uti.   I sure would like to know. 

[George2037]

I made the bad mistake of getting a CitiFinacial Loan to build credit and well it's coded as a "consumer finance loan" (big no-no with FICO.

The balance doesn't count toward your UTL but it does count towards your DTI ratio.  Just find out exactly what type of personal Loan it is, your attempt at building credit can back-fire on you. 

Instalment loans after 6 months help your FICO, but it takes at least a year for it to support it (hope that makes sense).

[jackg]

My-dog-Fico,

Everythings OK, don't worry.

I don't know if you are an Equifax puller or not but a few days ago they introduced a new format for presenting all your credit information on a single page. It's attractive and useful. It opened my eyes to something new that perhaps we should be paying attention to. 

The lines of information have headings such as what you would expect, mortgage, installment, revolving, other. The columns are familiar also, except one, and it's called "Debt to credit ratio". In my instance I have 2 installment (auto) loans  whose original value is listed under "Credit Limit", and since they are new, my Debt to Credit Ratio column says 78%, what?  My revolving credit, Debt to credit ratio is 2%. Next I looked at the "TOTALS" line and was shocked to see that my "Debt to Credit Ratio" says 34%. WHAT!!

This is a new way to look at it for me but I suppose it would be very helpful for a potential creditor. Debt to income ratio has been a long running metric and perhaps this new, to me, one called Debt to credit ratio may lurking on the horizon as tool to be used by creditors to rate jack all of us. Remember, give an accountant a set of numbers and he'll make them tell you what ever you want.