My goal is to get really high credit scores and one of the reasons reported on my Transunion credit score for why it isn't higher is:
003 PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH.
Can you guys help me tease out this calculation to figure out what is too high an amount? I've determined that this refers to student loans and is probably calculated as loan balance/original amount. For those of you that have gotten this same message, what is the % of loan balance to loan amount that you had when your score was pulled? Any percentage below what anyone reports in this thread is probably okay.
Currently mine is at 104% and was at that amount or higher when the score was pulled. Looking on these forums someone else had 104% and got this same message. I wonder if I get it under 100% if it will be considered okay, or if it needs to be much below that.
Yup I had this for a while because of my student loans. I did a consolidation and that remove it and my scores jumped. But only on TU.
I am receiving this message or similar on both, TU and Experian. My TU ratio is 75.9%, and because one of my creditors is not reporting to Experian, it is 74.2% there.
Don't put too much interest into these messages. They aren't things that are really being used to calculate your FICO score. It is very common for student loans to go higher than the original amount taken out. The balances on revolving credit lines (credit cards) is what is taken into account.