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

DoogieBall
Regular Contributor

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

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:

 

debt2cred3.png

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



R.I.P Cards

TU Early Exclusion -5 months -65 pts
EX Early Exclusion -3 months -82 pts
EQ Early Exclusion -2 months -135 pts



Message 1 of 8
7 REPLIES 7
Girlzilla88
Valued Contributor

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

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 Smiley Very Happy     It's always good for your MIX to have either Mortgage or Auto on there Smiley Happy    As well as around 3 cards for 'optimal use'










Message 2 of 8
Girlzilla88
Valued Contributor

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

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










Message 3 of 8
DoogieBall
Regular Contributor

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

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.



R.I.P Cards

TU Early Exclusion -5 months -65 pts
EX Early Exclusion -3 months -82 pts
EQ Early Exclusion -2 months -135 pts



Message 4 of 8
LaHossBoss
Valued Contributor

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


@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?




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 2•21 | EQ [F8 640] [F9 645] [EQ5 678] [VS3 651] | TU [F8 620] [F9 620] [TU4 683] [VS3 605] | EX [F8 612] [F9 651] [EX2 628] [VS3 589]
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Message 5 of 8
BrutalBodyShots
Super Contributor

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

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.

Message 6 of 8
Girlzilla88
Valued Contributor

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

@BrutalBodyShots     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 Smiley Happy










Message 7 of 8
BrutalBodyShots
Super Contributor

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

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. 

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