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New Contributor
JohnDoe12
Posts: 105
Registered: ‎02-01-2011
0

Credit/Debt ratio

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


Starting Score: EQ 660, TU 698 - 30-Jan-2011
Current Score: EQ 710, TU ?? - 02-March-2013
Goal Score: EQ 700, TU 720 30 - Jan 2011


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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Credit/Debt ratio

New Contributor
JohnDoe12
Posts: 105
Registered: ‎02-01-2011
0

Re: Credit/Debt ratio

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

 

Is it all my revolving credit  /  all my debt?

 

Is mortgage included in the calculation?


Starting Score: EQ 660, TU 698 - 30-Jan-2011
Current Score: EQ 710, TU ?? - 02-March-2013
Goal Score: EQ 700, TU 720 30 - Jan 2011


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Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Credit/Debt ratio


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

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Credit/Debt ratio


rckstrscott wrote:

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


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.

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Credit/Debt ratio


guiness56 wrote:

rckstrscott wrote:

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


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.


No kidding??

 

Learning something new everyday haha

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Senior Contributor
DaBears
Posts: 3,930
Registered: ‎10-26-2012
0

Re: Credit/Debt ratio

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


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