OK, so NOW what to expect???!!!!

[Anonymous]

OK, I just realized I'm leaving something out - potentially relevant to the "what next?" question.  I'm in the "mid-sixties" annual income range and now, after acquiring this loan including my house and car notes, I've got a total debt of ~$163,500.  With this DTI ratio and all of the above info I've offered, does this change your prediction in any way?  Thanks again for your help and knowledge!

[Anonymous]

Income is not a factor known or considered by the FICO algorithm, so DTI with respect to your score doesn't matter.

[Anonymous]

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@Anonymous wrote:

Income is not a factor known or considered by the FICO algorithm, so DTI with respect to your score doesn't matter.

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OK, I guess I knew that.  More specifically, sitting across the desk from a potential lender/decision-maker with a hard-pull in hand, is my DTI good, within reasonable limits null, or bad in your opinion?

[jamie123]

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@Anonymous wrote:

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@Anonymous wrote:

Income is not a factor known or considered by the FICO algorithm, so DTI with respect to your score doesn't matter.

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OK, I guess I knew that.  More specifically, sitting across the desk from a potential lender/decision-maker with a hard-pull in hand, is my DTI good, within reasonable limits null, or bad in your opinion?

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You need to actually find your DTI ratio. You do this by adding up all your monthly credit payments. (Mortgage, Auto Loans, Installment Loans, Student Loans, Credit Cards, Etc.) (Not electricity, food, gas, cable, Etc.) Use the minimum payment amount for credit cards.

You then divide your total monthly payment amount by your total monthly gross income. This will give you your "Debt To Income" ratio as a percent of income.

If this number is over 40% you might be considered "at risk" depending on the individual lender's standards. This should only be considered a ballpark estimation of credit worthiness because lenders standards can vary quite a bit.

[Appleman]

I think BBS is correct in his assesment of your score improvement. I could see 40 points happening but we would all like to hear what does happen to your scores.

If you do not have a FREE Credit Sesame account, I would recommend that to see the rough estimate of your current DTI level. That is where I follow my DTI and it is fairly accurate according to my records.

With the personal loan at 17% there is hope that you could improve that with a refinance once your score improves. There are plenty of sites that allow you to see if you pre-qualify with a SP and you may also want to see if a CU can help you out.

Any extra money you put toward the personal loan is like getting a 17% return on investment. Hard to hit that in any market. 

Congrats on wiping out some credit card debt.

[Anonymous]

OK, so here's where we're at today, and it's quite interesting.  I have Credit Karma as well as all of the other major credit monitor apps.  Specifically, I just noticed today I had a notice from WalletHub (supposedly it updates the FAKO every single day and it seems to do just that).  I opened it up and noticed all of the major CC payments I made had posted (but not all) and my FAKO went from 639 to 699...mind you, this is only after a few days since the personal loan I took out.  Also, the new installment loan ($30K) hasn't appeared, nor have the other two installment loans show a zero balance yet either.

I promised to keep BBS updated, so here ya go.  Lots more needs to be reported at this point, including all of my cards with smaller balancing not reporting as "zero balance" yet.  I'm expecting in the end to lose some of those points I just received fairly soon.  Also, I don't have any FICO reporting to refer to as of right now either.

[Anonymous]

Do you have access to any of your FICO scores?  How about creditscorecard.com?  Have you done any CCT $1 trials?

[Anonymous]

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@Anonymous wrote:

Do you have access to any of your FICO scores?  How about creditscorecard.com?  Have you done any CCT $1 trials?

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Through various cards I have access to all FICOs but I have to wait for them to update.  Another update though: Credit Karma updated just today and my big balances have updated to zero but there are still some smaller balances still reporting AND the new TL ($30k) isn't reporting just yet.  According to the app my TU FAKO jumped 58 points to 698 and my EQ FAKO jumped 64 points to 714.  As the other zero balances report (about 6 are still showing small balances of less than $1000) and the new TL reports, what would you assume I should expect in the short-term?

[Anonymous]

Experian FICO (Current)