Hi, I was looking at my 3-Reports from myfico (the free one you get when you sign up for the 3-score monitoring service), and I noticed that for Equifax and Experian, the report claims my "Ratio of your revolving balances to your credit limits" is equal to 94%. The actual ratio is between 1-9% on my open accounts, but for EQ and EX they're probably counting a 40K closed charged-off account as part of the balances. Which leads me to my question - if the CRAs factor in closed charged-off accounts with balances as part of the revolving balance, then wouldn't the math look something like this :
revolving balance = $300 (real) + $40,000 (charged-off account) = $40,300.
credit limits = 4,250.
UTL = 40,300 divided by 4,250 = 9.48. So shouldn't my UTL ratio = 948%, not 94% ?
Someone on here mentioned that the old charged-off credit limits do *NOT* count towards your available CL for the purpose of this calculation....
Yes, I have.. but the UTL calculation is still a mystery to me, given my numbers.
The total (open) available credit lines do seem to be reporting correctly. They stand at 4,250 at this moment. I am *not* using 94% of 4,250.. I keep a close eye on that. I'm using a few % of that. So I'm just wondering how they came up with 94%. Anybody ?
AI am looking at my myFICO 3 in 1 report and don't see that calculation. Where should I see it?
Additionally, closed revolving accounts with a balance can hurt you. I had a closed account with a balance and the balance amount counted (numerator) but the credit limit was reported as $0( (denominator).
@tomfromrictmame wrote:AI am looking at my myFICO 3 in 1 report and don't see that calculation. Where should I see it?
Additionally, closed revolving accounts with a balance can hurt you. I had a closed account with a balance and the balance amount counted (numerator) but the credit limit was reported as $0( (denominator).
Hi Tom,
Here's what I did - I clicked on 'Printable View' for my 3 reports, and I saved the resulting html page. On that giant report that's all in one page, do a search on 'Negative Factors' (Control + F if you use Firefox). Mine is there. It shows 94% for both EX and EQ, and nothing for Transunion (TU should be at 6% if they did report).
About the numerator & denominator - right, you're underscoring my point. If they count the balance of the charged off account (numerator), that makes my numerator $40,300. If they don't count the CL, then my denominator is 4,250 from 3 open active credit cards. If you divide those, the number exceeds 100% UTL ratio. In fact it goes to 948%.. yet my report shows 94%. I'm just curious as to why/how that is... come on credit veterans, I know you're lurking there and someone has the answer! :-)
P.S. - I seriously love this forum. I used to be a 'forum guy' back in 2004-2006, then it faded away, and I'm now I'm totally back into it - well at least for *this* website. I could spend 24 hours a day if I had the time available and still only scratch the surface of the knowledge that's on this forum!!
@Anonymous wrote:Ok, on your Equifax report (I'm assuming you D/L'd and saved the PDF from your free copy) - right at the top it has your credit summary, and it should list Mortgage, Installment, and Revolving - On each line it should list, the number of accounts, Balance, Available, Credit Limit, and Debt to Credit Ratio, Monthly Payment Amount, and Accounts with a Balance - Does this line (for revolving) read correctly?
Hi Norman, I have no such area on my credit report. To be clear - the credit report I'm looking at is the one from myfico called the 3-Report View.
If I click on 'Revolving Accounts' in this CR, I can click on 'Open' and 'Closed' or 'All'. The 40K card charged-off card in question - shows both in the open area, and the closed area... which seems inappropriate. They charged off and closed the account in 2009, so I'm not sure how they could get away with reporting it as an Open account now? Any ideas ?
@lhcole77 wrote:OP: Is the charged off account a revolving credit account?
Yes, charged off in 2009. 40K limit