What does open real estate account balances are too high compared to their loan amounts mean?
The outstanding balances on open real estate accounts remain high compared to the original loan amounts. People who haven’t paid down much of their mortgage or other real estate loans are higher credit risks than people who have.
What does amount owed on revolving accounts is too high mean?
Amount owed on a revolving account is too high means that you owe too much money on a revolving account, such as a credit card, home equity line of credit, or personal line of credit. To avoid receiving this notation, you should pay down the balance on your revolving accounts.
Is the proportion of loans to loan amounts too high?
PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH: The balances of your non-mortgage installment loans (such as auto or student loans) are high compared to your original loan amounts. As you pay down your loan your balance decreases, which reduces the proportion. The only loans I have are two student loans, Subsidized and Unsubsidized.
What’s the ratio of loan balance to loan amount?
It even states at the bottom that Fico High achievers have paid down 40% of the principle. In this example, 74% has been paid down and Experian counts the loan balance as a negative. Loan balances “The remaining balance on your mortgage or non-mortgage installment loans is too high.
How does a decrease in installment loan balance affect your FICO score?
As installment loan balances decrease, they have less impact on a FICO® Score. Note, consolidating or moving debt from one account to another will usually not help a FICO® Score since the same total amount is owed and the score may go down due to opening a new account.
How are loan balances reported on credit report?
Often the report unfairly reports a loan balance as a negative on your credit report. In this example, it is only a $500.00 loan and two-thirds of the loan is paid off. It even states at the bottom that Fico High achievers have paid down 40% of the principle.
