topic Re: Credit utilization and charge off in Understanding FICO® Scoring

Credit utilization and charge off

Anonymous — Sun, 03 Feb 2019 09:46:11 GMT

Hello, Hope all is well. Me and my husband will be applying for auto loan soon so I’m trying to make sure utilization is where it needs to be. From what I understand that is at 8.9% is this correct?
I want to know if I need to count a charge off account balance into the mix or just credit cards? Obviously I’m trying my best to get best credit scores for apr on auto loan. My credit is new and I’ve seen my scores fluctuate 30 to 40 points. I believe I have my scores and utilization understood however my husband has a baddie on his report and just wondering if balance on that baddies is reflected in his utilization?

Also I have better score w low income and he has better income with low scores than me so are we better off doing a joint application or him co signing for me? Which would give us better approval odds and the best apr?

Thank you in advance for any input 😍💯

Re: Credit utilization and charge off

Brooklyn2018 — Sun, 03 Feb 2019 13:00:00 GMT

OP

To answer your question,

If the CO is a credit card(?) Then yes. It is affecting your UTL. Paying it down to $0. will help with lowering your UTL%.

Hope that helps some?

Re: Credit utilization and charge off

Anonymous — Sun, 03 Feb 2019 13:02:45 GMT

Thanks for your response. It was a installment loan. Would that still count like a credit card?

Re: Credit utilization and charge off

Brooklyn2018 — Sun, 03 Feb 2019 13:10:00 GMT

No. But, it will still count towards DTI ratio, in terms of a manual underwriting review-in this case the auto loan.