Debt to Credit ratio. Loan vs. Total. Is it a big deal?

[DoogieBall]

Hello everyone,

I wasn't sure where this should go so Mods please move to appropriate location if needed.

I was going through my EQ report and saw this:

I'm curious how my auto loan balance is affecting my profile.  I see the 51% ratio, but then see the 27% ratio for Total.

Would increasing CL on CC accounts affect anything?  Or should I not even worry about it since installment is listed separately from revolving?

Thanks for any insight

[Girlzilla88]

It's basically split up into three different Categories so you have your REVOLVING (Open ended accounts/Credit Cards), INSTALLMENT (that would be like some loans or Car loans here/Mortgage) and then there is OTHER/PERSONAL (which some other loans may fall under and then you have your INDIVIDUAL Utilization and Overall UTL/AGG I hope this helps      It's always good for your MIX to have either Mortgage or Auto on there     As well as around 3 cards for 'optimal use'

[Girlzilla88]

Also I see your Credit Cards are showing 0% you don't want that I know that may sound backwards, but you are at the 51% because it looks like you have paid your car down to 51% of the remaining loan, but you want at least one of your Bank/Bank issued cards to report somewhere between 2-8.9% and it's ok to have the others report 0 no problem but you would be dropped some points for an all 0 penalty

[DoogieBall]

Yeah, I've been trying to keep a balance on one card but with all of them reporting on different dates, it's a bit tough.  I was letting one of the CapOne cards report every month which was going pretty well, but I forgot a few times and just paid everything top down.

[Anonymous]

---

@DoogieBall wrote:

Yeah, I've been trying to keep a balance on one card but with all of them reporting on different dates, it's a bit tough.  I was letting one of the CapOne cards report every month which was going pretty well, but I forgot a few times and just paid everything top down.

---

You are fine. It shows $36 reported. There is activity and I do not believed you will be hit with an all-zero penalty.

Someone correct me if this train of thought is somehow incorrect?

[Anonymous]

Assuming the $36 reported balance is on a major bank card, you should be fine.  That's also assuming that you haven't paid the $36 down to zero and are awaiting a $0 reported balance on that account.

[Girlzilla88]

@Anonymous     As Brutal said that is true and Also assuming  that it's not on a High Limit card to where they may possibly round down to 0% for example if your CL is 5k and you put less than 40 dollars on it sometimes they will round it down to zero so just be careful

[Anonymous]

When you say "they" may round it down who are you referring to?  I'm not sure if you mean a CMS or the Fico algorithm.

My understanding has always been that a CMS will often round down for a percentage that's < 0.5% and display 0%, but that doesn't impact the Fico algorithm as any non-zero dollar balance reported will constitute utilization, even if it's .0001% of a limit, for example.