Utilization question

[Anonymous]

I recently received my first card that gives me an actual FICO score (Barclay Arrival+ WEMC) and it is showing 730.  Under factor affecting my score it says this:

  2.  Proportion of loan balances to loan amounts is too high  Hide details

       Consumers who use a high percentage of their available credit (generally known as utilization) have a higher risk of delinquency (falling behind on payments) and charge-          off (loan default) over time. Lower use of available credit allows consumers who have the need to temporarily carry higher loan balances to do so, because they have available credit on their accounts. Consumers with heavier credit usage cannot absorb changes to their financial situation as easily, which can lead to higher risk over time. Keeping credit balances lower in relation to available credit will help reduce the negative impact on a credit score over time.

My credit card utilization is around 5% ($750 on one card with limit of $7000 on total available credit of $13500 over 5 cards) so it would seem odd that this would be negatively impacting my score.  Unless the fact that the one card with a balance is a little over 10% is a negative impact. My question is with the wording "loan balances to loan amounts is too high"...does this mean installment account utilization plays a factor in my score because I do have a very new mortgage and car loan that would be showing 90+% of the original loan amount.  Hopefully I was able to articulate my question in a way that you can understand. I appreciate any help.

Thanks

[tonyjones]

That means your installment loan to your income is high, debt income ratio.

[gdale6]

Yes this reason has to do with installment loan balances being to high. I would disregard it I got that all the way down to 1 payment being owed on a personal loan and when that payment was made and the loan closed it switched to no recent installment loan info....

[NRB525]

+1 Mortgage is the trigger. Not to worry.

OP these FICO scores and Reasons Letters you will get from CCC seem to have a requirement to select something, anything, from the list of "reasons your credit is not perfect". So you will always get reasons. Sometimes they make sense, sometimes they are just head scratchers.

[Anonymous]

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@tonyjones wrote:

That means your installment loan to your income is high, debt income ratio.

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It has nothing to do with DTI. It is the proportion of remaining balance owed to the original loan amount.