@Anonymous wrote:
But what is remaining balance on your mortgage/ non mortgage is too high? How does a credit bureau determine what is too high? Is it based off income. I've never seen this before but it shows now all of a sudden on every app I have. Can I still get cc approvals with it?
I believe that means you still owe too much on your mortgage compared to the original loan amount. (i.e. Original loan was for $250k and you still owe $240k) sometimes this is listed as a denial reason, however for CC apps it shouldn't generally affect you too much. The denial reasons are usually generated by a computer and sometimes this pops up.
Probably. I recently refinanced my car with my mom as a cosigner (my credit history was much too short to be considered on my own) in May so I've only made a couple of payments and I've seen that same exact reason pop up in denials.
It's any installment loans.
I had that listed in my reason codes when my installment utilization was 60% on my itty bitty secured loans; when I paid them down to 9%, it went away. Somewhere between those two numbers is a breakpoint, not quite sure what it is.
Not sure how mortgage will report, if I get zapped to the tune of 20-30 points across the board, it's counted the same way. If I don't, then it's counted seperately from this calculation. Nothing to do with income at all, just aggregate (and maybe individual, didn't really get to test that) current balance vs. initial balance on installment loans in FICO 8.
FICO 04 ignores it as near as I can tell, EX 98 at least does take this into consideration.
