MyFICO Score Summary - Amount of debt question, etc.

[gamegrrl]

I was just looking at my info here on myFICO, and I was curious about a couple of things on this chart:

My payment history is showing as "Good". That's nice  as it's been five years since I paid anything late at all. I do have two student loans that I defaulted on in 2006 that have since been rehabilitated and paid on time for several years.

I find the Amount of debt indicator of "Not Good" kind of odd. I own my own home. My cars are paid off. I got an $11K loan last summer to put a new roof on the house (a darn Wells Fargo LOC that's reporting as a credit card) and I am still paying off my student loans (balance of about $21K altogether). Other than that, I have the following credit cards/balances:

Best Buy $0

CapitalOne $0

CapitalOne $500

Orchard Bank $0

Orchard Bank $0

Giant Eagle $0

Amazon (Chase) $0

Given all that, I am surprised at the "Not Good" rating. I mean, most people I know have a mortgage and at least one car loan, not to mention balances across several credit cards and other loans. Any thoughts about this?

[MarineVietVet]

Hi there,

Is this a TU report? If it is on page 2 (Under "What's Hurting Your FICO Score") does it say something like this:

The balances on your non-mortgage credit accounts are too high.

My TU report always says that.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[gamegrrl]

It is, indeed, the myFICO report for Transunion. On page 2, it mentions three things:

• You have a serious delinquency (60 days past due or greater) or a derogatory description on your credit report. (Student loans, I'm guessing)
• You've made heavy use of your available revolving credit. (Because the 0% roof loan from Wells Fargo is reporting as a credit card?)
• You have multiple accounts showing missed payments or derogatory descriptions. (Also from the darn student loans, I guess)

*sigh*

[MarineVietVet]

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@gamegrrl wrote:

It is, indeed, the myFICO report for Transunion. On page 2, it mentions three things:

• You have a serious delinquency (60 days past due or greater) or a derogatory description on your credit report. (Student loans, I'm guessing)
• You've made heavy use of your available revolving credit. (Because the 0% roof loan from Wells Fargo is reporting as a credit card?)
• You have multiple accounts showing missed payments or derogatory descriptions. (Also from the darn student loans, I guess)

*sigh*

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Yep it looks like that LOC is being scored as revolving credit. But many LOC's are scored this way until the CL gets to be pretty high and then it's counted as an installment loan. 

What does that make your utilization?

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[gamegrrl]

It makes my Utilization a horrible 57%. Oh the irony. It's a 0% loan, so I haven't been particularly worried about paying it off ahead of schedule. I may have to rethink that.

On a positive note, my debt to income ratio is 9%.

[JoeBJay20]

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@gamegrrl wrote:

It makes my Utilization a horrible 57%. Oh the irony. It's a 0% loan, so I haven't been particularly worried about paying it off ahead of schedule. I may have to rethink that.

On a positive note, my debt to income ratio is 9%.

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If the interest rate is 0%, then there is no financial benefit to paying it off early. You would probably be better served taking that extra money and investing it.

[gamegrrl]

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@JoeBJay20 wrote:

If the interest rate is 0%, then there is no financial benefit to paying it off early. You would probably be better served taking that extra money and investing it.

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But until that utilization goes down, my score is hosed pretty badly, and I need a kitchen renovation loan.