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Credit/Debt ratio

New Contributor

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: EX ???, EQ ???, TU 822 | 11-Aug 2015
Goal Score:EX 700, EQ 700, TU 720 | 30-Jan 2011
Goal Score:
EX 800, EQ 800, TU 843 | 30-Aug 2015
***High Score:TU 843 - Dec 2014 ***
Message 1 of 7
6 REPLIES
Epic Contributor

Re: Credit/Debt ratio

Message 2 of 7
New Contributor

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: EX ???, EQ ???, TU 822 | 11-Aug 2015
Goal Score:EX 700, EQ 700, TU 720 | 30-Jan 2011
Goal Score:
EX 800, EQ 800, TU 843 | 30-Aug 2015
***High Score:TU 843 - Dec 2014 ***
Message 3 of 7
Valued Contributor

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
Message 4 of 7
Epic Contributor

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.

Message 5 of 7
Valued Contributor

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
Message 6 of 7
Senior Contributor

Re: Credit/Debt ratio

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

Message 7 of 7