@Taylor92 wrote:Hi,
Question - on MyFico, I have a loan open that reports to all three agencies. All three agencies are showing it as an installment loan which is should. The problem I'm having is that it is being factored into my credit utilization for Experian only.
Is this a MyFico issue?? Because on the Experian app it shows my CC utilization at 2%. I've already done the math and I know 100% that it is this account being factored in. Help me understand please. Thanks!
It's not meaningful. It's only being counted as installment utilization, not as revolving utilization. And it's also counted as an 'account with balance'.
Experian just finds it useful to lump revolving debt and installment debt into a "total debt" number, but it has nothing to do with scoring.
If you go to your overview page where it analyzes scoring factors, and click on debt there, you'll see that the revolving debt section does not include your loan.
@Taylor92 wrote:Thanks for the response.
I understand that it does not show up under revolving debt when I go into my actual credit report, but when I look at "credit utilization"
Equifax and TransUnion are 2%...and Experian shows 33%. With the extra balance being the one loan that I have open.
On my site it shows up under "total debt" and "total balance" but does not show up under "Amount of debt" or "Revolving utilization". In any event, it doesn't matter.
@Taylor92 wrote:What do you mean it doesn't matter? Would that not affect my score? It technically pushes my overall credit utilization to over 30%
It's not affecting the scoring.
What you're looking at is just window dressing for the user interface.
In the FICO algorithms revolving utilization is one thing, installment utilization is another, and never the twain shall meet. Lumping them together as your "total debt" is just something someone is doing to help you get an overall picture of your finances.
