I have a FICO 8 score that is fluctuating from 810-830 and the only reason code given is:
Proportion of loan balances to loan amounts is too high
The only balance I have from month to month is my mortgage, which is 19.2% paid off, and I've made on-time payments for all 17 months since the start of the loan. The amount remaining on my mortgage is about half of my total available revolving credit.
I've played around with this for a couple of months, ensuring a $0 reported balance on all 7 revolving credit accounts and also with carrying a 1%-5% balance on all accounts, two accounts and four accounts. This code is reflecting specifically on the mortgage account.
I managed to dig up a bit of insight into this code as it specifically pertains to mortgages.
...in general, new loans will always draw up that response, whether it's a reason for decline or not, in regards to a new application for credit. This can be a negative impact towards you since it will appear that you have taken on new debt.
...balance too high in relation to loan amount, in other words, they want to see payment history on that account.
Source: FICO Forums March 29, 2014
It may be that I haven't yet hit some threshold of monthly payments and/or a % LTV ratio, although I would have expected a different code for that.
As for the questions on why I care: I'm just interested, that's all. I've been playing the FICO Score game for so many years that I thought I had it all figured out. I made a spreadsheet that predicts credit scores almost perfectly for revolving accounts, car loans and installment loans using payment history, AAoA, closed accounts, credit mix, the works, but this mortgage issue is the missing piece that my spreadsheet can't predict.
What percentage of my mortgage do I need to pay off (and/or how many consecutive months of payment are needed) for this reason code to go away?