Credit/Debt ratio

[JohnDoe12]

What is the rule of thumb on this?

I have 21K in student loans and 2K in CC credit.  So it's only 9.5%
 If I get a couple cards this year and get my revolving credit limit higher that will help out. I'm also going to put some money down on the loan.   If I can get to 30%-50% credit to debt OK?

There's got to be more to it than that. What if I had a mortgage? Even if I had 20K in revolving credit, it could potentially only be 10% of my debt....

Thanks,

JD12

[guiness56]

Mortgages and auto loans are installment and not revolving.

[JohnDoe12]

That's my point.... how is it calculated?

Is it all my revolving credit  /  all my debt?

Is mortgage included in the calculation?

[rckstrscott]

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@JohnDoe12 wrote:

That's my point.... how is it calculated?

Is it all my revolving credit  /  all my debt?

Is mortgage included in the calculation?

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For your credit score, when they talk about utiliization, its strictly revovling credit. 

No other loans or accounts are factored into the util percentage.

-scott

[guiness56]

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@rckstrscott wrote:

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@JohnDoe12 wrote:

That's my point.... how is it calculated?

Is it all my revolving credit  /  all my debt?

Is mortgage included in the calculation?

---

For your credit score, when they talk about utiliization, its strictly revovling credit. 

No other loans or accounts are factored into the util percentage.

-scott

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Installment utilization does factor into your scores.  Just not near as much as revolving.  Installment would probably factor in somewhere at around 10% or less but, it does factor in.

[rckstrscott]

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@guiness56 wrote:

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@rckstrscott wrote:

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@JohnDoe12 wrote:

That's my point.... how is it calculated?

Is it all my revolving credit  /  all my debt?

Is mortgage included in the calculation?

---

For your credit score, when they talk about utiliization, its strictly revovling credit. 

No other loans or accounts are factored into the util percentage.

-scott

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Installment utilization does factor into your scores.  Just not near as much as revolving.  Installment would probably factor in somewhere at around 10% or less but, it does factor in.

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No kidding??

Learning something new everyday haha

-scott

[DaBears]

+1 Installment loans have very low factors when it comes to scoring......they do help to some degree!!!!