09-10-2012 10:27 PM
In working with the Credit Stimulator, I learned that my revolving/open debts totaled $1328. I only have one cc with a $20o limit and a car note of $35/month. I do have an old debt that is still being report; would it be included in this category? I also have student loans in deferment. Any ideas on how this category was calculated?
09-11-2012 05:10 AM - edited 09-11-2012 05:11 AM
Did the simulator come from myFICO.com? If so, then yes, it would probably include other items. Revolving utilization includes all open CCs reporting anything other than a $0 CL. It includes any closed CCs reporting a balance and a CL. It includes LOCs and HELOCs up to a certain limit (YMMV on the FICO version). And it can include any charged-off CCs reporting a balance.
ETA it would not include the SL or car.
09-11-2012 03:09 PM
The terminology used in the post is a bit confusing.
There are three basis types of debt.... revolving, installment, and open. Revolving debt gives you a discretionary, approved level of credit, and your debt and payments revolve around your usage. Installment debt is a preset amount provided to you with specfic monthly payments over a specific term. Open credit is credit that is due in full when billed, such as certain AMEX cards and normal utilities, rent, phone, cable, etc.
What is the other "old debt" that is of concern as to its reporting? Open and installment accounts are not scored under util of revolving credit, as you have no utilization flexibility on those accounts. They are scored separately as % of debt, not % of util, and at a much lower weighting.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO