How to get Exceptional rating in the amount owed part of fico scoring

[erdoganog]

So as i wrote in the subject line

How can one person bring this part into highest level (currently at very good) 

At the time of the report pulled i had 4 accounts with balances should i decrease to only 2 ?

Also 1% debt limit ratio  (i dont carry much high balances on cards)

New auto loan at 19K but is now at 17K

And that is about it no mortage or student loans

[Thomas_Thumb]

I can't say for sure what level you need to get to for an exceptional rating on installment loans "amount owed". I know you can have an exceptional rating with a balance to loan ratio at just under 50%. Don't know the upper limit.

Most likely you need to be under 80% balance to loan ratio. Currently you appear to be at 89%.

Edit add: I had an Exceptional rating with 3 of 6 cards reporting balances and a Very Good rating with 6 of 6 cards reporting balances. Overall credit card utilization was under 4% in both cases.

[erdoganog]

oh okay thanks i am also going to have only 2 accounts for the next  1-2 months with balances just to give it a try

[Anonymous]

There are several factors involved:

For Credit cards:

*  Overall credit card utilization

*  Number of cards reporting a balance

For open installment debt (total or aggregate):

*  Ratio of total amount owed to total amount of the original loans (open loans only)

There are other factors too (like whether each card considered by itself is close to being maxed out) -- but as you have described your situation that is already an area you are getting maximum points for.

As TT mentions, you'll get some points for paying down your car loan.  To exactly what % you need to go, I don't think anyone knows for sure.  TT and Revelate and others have been trying to look into this.  Maybe 80%?  70%?

As far as the number of accounts reporting a balance, the ideal is exactly one.  Two is not better and it could be worse, depending on the total number of cards you have.  (If you have 1-4 cards, 2 is worse.  If you have 9+ cards there's probably no difference.)

One thing worth keeping in mind is that playing with the "number of cards showing a balance" factor is something that is easy to do in the month before you need the most points you can get.  You will get no medium or long term benefit, however, from trying to keep only 1 card reporting a balance, month after month.  For most people that's just a headache.

[JagerBombs89]

Easy:

[Revelate]

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@JagerBombs89 wrote:

Easy:

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Worth every bit of the pixels it's printed on!

OP: It's just third party presentation, nothing intrinsic to the algorithm.  

[NRB525]

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@erdoganog wrote:

So as i wrote in the subject line

How can one person bring this part into highest level (currently at very good) 

At the time of the report pulled i had 4 accounts with balances should i decrease to only 2 ?

Also 1% debt limit ratio  (i dont carry much high balances on cards)

New auto loan at 19K but is now at 17K

And that is about it no mortage or student loans

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Which website are you looking at, with the "Exceptional" goal?

What are your current real FICO scores?

[erdoganog]

at the time 11/2015 i was hovering 753-754  now 759 transunion 8 btw anyways i figured it out i left only 2 cards with balances show only but to my suprise did not change my score but now its 759 February update and due to me gardening since October 2015 going to pursue my gardening as long as i could lol

[SouthJamaica]

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@erdoganog wrote:

So as i wrote in the subject line

How can one person bring this part into highest level (currently at very good) 

At the time of the report pulled i had 4 accounts with balances should i decrease to only 2 ?

Also 1% debt limit ratio  (i dont carry much high balances on cards)

New auto loan at 19K but is now at 17K

And that is about it no mortage or student loans

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In that category I have "exceptional" from 2 bureaus and "very good" from the third.

The ones that say "exceptional" have me at lower percentage capacity utilization, less accounts with balances, & lower total revolving balances.

If I had to guess, my guess is it's best to have 1% or lower revolving capacity utilization, and less than 50% of your revolving accounts showing a balance.

[Thomas_Thumb]

1) Had an exceptional rating across the board on MY Fico with 3 of 6 cards repotring a balance and overall CC utilization of 3%

2) Had a very good rating across the board on MyFico with 6 of 6 cards reporting a balance and an overall CC utilization of 3%

The presentation rating looks at number of revolving accounts reporting a balance but may consider % in the equation as well. It looks like up to 3 cards reporting is ok. A total of 5 cards reporting may be too many if strictly count based. If % is considered - then data shows 50% or less is ok. However, I suspect someone with 20 cards could not report balances on 10 and get an exceptional rating.It would be interesting to see how many CC accounts someone has reported while still receiving an exceptional rating.

Best guess on aggregate utilization cutoff for exceptional rating is under 6% - based on summary report high achiever statements (no data on upper limit).