Understanding FICO® Scoring

[r92503lind]

I purchased the FICO score for EX today and where it gives explanation on the good and back of the score it stated the following below:

"The remaining balance on your non-mortgage installment loans is too high. "

In reading posts on myfico I had always thought installment balances do not matter as they do not change as revolving debt does. This only shows up on EX and wanted to find out why its only EX and if this is the case what data is used to compare the percentage paid vs. original account balance.

Anyone had this before that could help?

[fused]

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r92503lind wrote:

I purchased the FICO score for EX today and where it gives explanation on the good and back of the score it stated the following below:

"The remaining balance on your non-mortgage installment loans is too high. "

In reading posts on myfico I had always thought installment balances do not matter as they do not change as revolving debt does. This only shows up on EX and wanted to find out why its only EX and if this is the case what data is used to compare the percentage paid vs. original account balance.

Anyone had this before that could help?

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Disregard it?

[Timothy]

I started getting this after my SL consolidation-

seems it is completely ignoring closed accounts.

-I say it means that is is "grasping at straws" to find something wrong w/ you report.

[r92503lind]

What information does it use though to compare how much you have paid toward the loan? Would it be credit limit because this is missing OR would it be the high balance?

[Timothy]

my guess it is taking the open installment accounts (not including mortgage)

taking the total balance/original balance

For me

2 student loans just consolidated 9859

1 auto loan 17088 bal on 30008 loan,

26974/39867 = 67.6% UTL on open installment accounts.

if they included closed accounts in the equation.

Closed /PIF accounts 2 unsecured, 4 auto, 1 Con Finance, 4 SL's,

26974/102013 = 26.4%

this total includes the open accounts.

This gets even scarier when mortages are included.

I say take it with a grain of salt - unlees you can pay the UTL under 50%.  

[r92503lind]

It does say it ignores mortgages so at least that helps....

I will have to call myfico to see what info it pulls from for the original balance because the credit limit area is blank and this would easily cause it to be an issue if you had no original reference point.