Can somebody please explain...

[ScoreBooster]

...if this is a new criteria? It shows on my TU report as 4th reason why my score isn't higher. Does that mean you are punished for an auto-loan exceeding $1,200? That, IMO, would be ridiculous:

What to do about this: You should try to pay off your current debts and maintain low balances. However, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.

The balances on your non-mortgage credit accounts are too high.

Total amount you owe on all non-mortgage accounts$4684

Most FICO High Achievers [?]carry a total balance of less than $1200 on non-mortgage accounts.

Your FICO score considers how much you owe on your credit accounts, such as revolving credit accounts [?] and non-mortgage installment loans [?]. Generally, the more you owe on these accounts, the greater risk you pose to lenders.

[MarineVietVet]

I get the same "The balances on your non-mortgage credit accounts are too high" message.each time I pull my TU score and report. I just ignore it. It doesn't mean anything.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[ScoreBooster]

Thanks, Marine!

I already thought that it might not be too important because this scenario should apply to quite a few people - I just haven't noticed it before...probably because my score was too low and other factors were worse than that..

[MarineVietVet]

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@ScoreBooster wrote:

Thanks, Marine!

I already thought that it might not be too important because this scenario should apply to quite a few people - I just haven't noticed it before...probably because my score was too low and other factors were worse than that..:smileyvery-happy:

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That's a good sign for you then.    It shows your score is improving because as your score gets higher it seems like the nit picking gets worse.

In fact it's always the only "negative" on my TU report. EQ doesn't seem to care about my non-mortgage balances.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[ScoreBooster]

Yeah, so far, I'm not complaining.

When I filed for my CH7 BK in September, my scores were TU 589 and EQ 573. After discharge, TU was 563 and EQ 568. As of today, TU is at 601 and EQ up to 648. Considering that I opened 3 new CCs and an installment-loan after discharge in January, I'm quite happy..

[GregB]

"Punished" is a matter of degree. A "FICO High Achiever" is unlikely to have any car loan at all and minimal balances on CC accounts since there would just be the previous month charges. No car loan and $1200 balance reporting on CC sounds about right for "most" High Achievers. I have financed no more than 10% of the cars purchased and must say that I would have a tough time justifying most of those as making sense.

With good history, deviating above those amounts should be very little "punishment".

[marty56]

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@GregB wrote:

"Punished" is a matter of degree. A "FICO High Achiever" is unlikely to have any car loan at all and minimal balances on CC accounts since there would just be the previous month charges. No car loan and $1200 balance reporting on CC sounds about right for "most" High Achievers.

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I don't buy the no autoloan for FICO high achievers.  Auto loans are scored the same as a mortage as far as I know.  Also there is no evidence that installment loan balances effect your FICO score like revolving credit balances do.