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Posts: 28,098
Registered: ‎04-01-2007
Re: Help in understanding debt to credit ratio and the effects on scores
jbhenrietta, the best I can say is to keep doing what you're doing --working to get the serious baddies off. I hope some of these do come off for you. It sounds like you've read through the processes on the Rebuilding board, and I never pretend that I know the details on all that.

Again, though, do realize that the util on your installment loan is considered completely separately from the util on revolving, and it's revolving util that drives your scores so strongly.

For instance, my installment util is 79%, my mortgage util is 85%, and my revolving util is essentially 0%. The fact that I'm only a year into my car loan and a third of the way into my mortgage doesn't affect my revolving util scoring at all, and I don't get any negative comments about high installment util. (That's one of the very last dings they throw at you, once you've reached near-perfection everywhere else on your reports.) So throw any extra money at the credit cards, and then into savings, before doing something on the loan, unless your mortgage lender specifically says to get your loan down to a certain figure. If s/he does, you can then use some of the savings for that purpose.

I hope that makes sense. I know it feels like being in the middle of a tornado sometimes.

So, pay down and keep down CC's, paying them off as you go and only letting one report a tiny balance to the credit bureaus, and then sock money away in savings, and only pay extra on the loan if specifically told to do so by your mortgage lender. And keep working, working on the clean-up stuff. Good luck!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007