Question #1
1) Is there such a thing of a dept to credit ratio or a
dept to total
credit ratio?
Answer click here
I always find information about the dept to income ratio and
apparently this is used not for credit score calculation but for loan
application. So it should not affect my credit score. I always pay off
credit cards in full monthly.
My total credit is 29.1k and I hardly carry a credit of 1k to 2.5k
monthly. I always pay off credit cards in full monthly. That would
calculate a ratio being less than 10% unless such a ratio is
calculated individually by credit card. However, I also make sure that
I never have a higher ratio than 25%.
2) Credit Card Cancellation to streamline accounts.
With 771, I am happy now. Some credit cards that I used got me there
but there are not needed anymore now because I used different ones
now. A couple of months ago I got a Chase Freedom card and a citi
Premier Pass card. I want to keep my Discover card so that makes
three:
Chase, 0.6k credit
Citi, 6k credit
Discover, 4.5k credit
I have in addition:
Citadel Credit Union Master Card, 10k credit
Emigrant Direct, 5.5k credit
CapitalOne, 2.5k credit
I would like to get rid off Citadel, Emigrant, and Captial, however,
all three combined have 18k credit or about 60% of my total credit of
all cards combined.
I tried to negotiate with Chase, Citi, and Discover to increase my
credit to that my total credit stays high while I was telling them
that I want to use their card only but may need an increase. They did
not increase.
I have a what-if credit card service and I did a what if analysis with these card canceled. Despite common believe no to cancel card, the impact on my score was not significant, a drop of about 10 points per card and than a couple more that I believe has to do with my total
credit of these three cards combined. Result, I will stay about score. Here my questions to this explanation:
It is a good thing to get rid off what you do not need anymore, right?
Will there be impacts to cancel 60% of my total credit? If so what
There must be something that I have to investigate why Chase treats me with just 500 bucks.
My total
credit of these three cards combined. Result, I will stay about 735
score.
Here my questions to this explanation:
-- It is a good thing to get rid off what you do not need anymore,
right?
-- Will there be impacts to cancel 60% of my total credit? If so what
might there be, in a negative and positive way?
-----------------------------------------------------------------------
Bo
771? Why worry. Be
happy Keep reading.
Always worry.
A 771 would suggest my debt to high credit ratio is very
good. Like you say.
DEBT TO INCOME RATIO
I can be turned down forr "debt
to income ratio" which has 50% to do with my credit.
My reported monthly debt is must be less than 45% of my, "show me the
stub" or, "two years tax returns" gross not net.
DEBT TO INCOME RATIO
Plus my
credit needs to be good. Super high provable salaries and large down
payments might overcome some bad credit.
I will be turned down for new credit no matter what my score is if my debt
to income ratio is above 45%. Even if I score a
700 771 772 773 774 775 776 777 778 779 800.
If I no mortgage is reported most potential lenders will add a rent
figure.
More than 45% reported debt leaves too little to live on, and looks like
bankruptcy is waiting. Believe it or not but people routinely get and
use too much credit and they become trapped into a charge off, repo,
late payments, judgment, bad check, hospital bill, electric bills. So
unsecured credit card debt is the more dangerous than secured car
loan loan
and home loan debt. They can reposes an asset and get some money back.
Thus secured debt.
This is why credit card companies who grant "unsecured
credit" are careful at first.
I have a lot of open credit I am not using and I am going to consolidate
to 2 or 3 credit cards and a debit card. I am shooting for credit cards
in the 40k total available and owe less than 10%. Right now I have about
8 or 9 cards. Before the year runs out I am going back to 2-3 cards,
house loan, car loan, maybe 1 more, and all that food, water, verizon
wireless, electricity, gas and gas.
-------------------
Same person
But how do you get a credit card with a credit line of
15-20k?
What do you mean by "consolidate"?
-----------------
Bo
I have to be with them for a 2-5 years or have a thick
credit file of 7 years no problems and ask them to raise my credit
limit. Most will every 6 months if you pay good
I am hoping to consolidate from 9 credit cards to 3 credit cards and 1 gas card.
------------------
RP
In other words, the total credit is not so important
when applying for
loans such as a mortgage, real loans. Correct?
---------------------------
Bo
A 771 means my debt to high credit ratio is very good.
My file might be thin though or I might have a debt to income ratio
problem.
Question #2
I have a arm coming due in july 08
this is what I have
1 mortgage never late for 3 years
1 mortgage ( rental property never late 3 years )
1 major credit card 3000.00 limit owe 1200.00
1 truck haven't been late in 3 years ( 4 more payments to go)
1 new truck ( 6 months never late)
bankrupt. 9 years ago
although I got alot of things deleted alot of credit card judgments my
trans union score is 698, don't know husbands yet, waiting to pull his
what kind of loan should I look for or will I even qualify for a loan to
refinace? I am worried sick I have 6 months to go, trying so hard to
reach 700 on fico, everyone says no new credit something about dept to
ratio, the rental property is rented and I have a lease to show the
morgage company. thanks
-------------------------
if they are turning you down for a debt ratio it would be a DEBT TO
INCOME ratio.
The score is so high it must be dept to income ratio.
No more than 45% owed per month against total gross monthly check stub
tax return income.
Past 2 years if self employed
DEBT TO INCOME RATIO
looks like your open credit is very good and your score reflects that
698
i would dispute some of the older paid items and hope?
A 698 SHOULD get you whatever you want.
2 more points might help you a percentage point or less, but not much
difference is there.
so dispute some old stuff
maybe pay the remaining four payments on the truck
other than that? you look good
--------------------------
hello, thank you, the truck will be payed off by the time I need the
loan, so that will help also, do you think I should get 1 more credit
card for a better mix, or just stay on the course I have in the works?
------------------
no new credit card now
cards need 12 months to help you.
you have enough credit: 3 lines reported now.
dispute some old accounts and hope
Credit Dispute Form
---------------------------
can u still dispute even if there marked paid or I should say settled
for lesser amount, like I said I did settle all of these accts 3 years
ago, so its just a matter of time before they fall off or don't look
that bad. I have 3 judgments marked paid would love to see those gone,
and the bank. will fall off in March 08
----------------------
you can always dispute something
it may not come up but you can dispute
