@taxdoc wrote:
@Anonymous wrote:WOW! Congrats to him! Big SL and big salary! Have a question for him. My hubby and I don't make as much but more than the norm. We have good credit imits and always keep our UT at the high range of 13% and mainly under 5%. I'm finding when I charge 25k in furniture, some cc's seem to think that is a high UT. We really don't see that as we can pay it off or pay it in 3-6 months. It just depends on what else we're improving with our home and how many checks we have to write since most construction businesses don't accept cc's around here. Just wondering if your friend has any similar issues. Thanks.
While I do not have the luxury of being in a higher income bracket as you and OP's family member at this time
, I do relate to your inquiry of high usage versus high utilization. I do not believe that a high usage that is PIF should be assessed in the same way of high usage and carry the balance for along time. Nevertheless, some creditors and I believe the FICO model factors the high usage. Someone else pointed to the mistake I was making. I would always clear my minimum payment on or before the payment due date but I may not PIF until a day before the statement date. So while the statement balance is low or 0, the "HIGH BALANCE" is higher because it exist on the payment due date. Gong forward, I'm going to accelerate my lump payment to the payment date so the report "HIGH BALANCE" is lower and then make an additional payment if necessary before the statement date.
I had no idea the "high balance" number was connected to the payment due date; I thought it referred to the highest internal balance regardless of date in the cycle. Are you sure about this?
@Anonymous wrote:
Wow. That s awesome! But I just have to ask why would someone making 400k needed help in applying for a CC :-)
1) Poor ppl will always know more about applying TO others, seeking approval FROM others than high achivers
2) Rocket scienist might need help logging onto Facebook....what's your point
@Anonymous wrote:
@Anonymous wrote:
It's not highest balance regardless of time of month. My high balance was always the statement balance, not due date.
And about the income, most people spend what they make (to an extent) but keep in mind that $25k is less than their monthly income..
Although, working in lending, it always baffles me why people will ask for a $15k car loan that make $30-$50k a month. I wouldn't ask for a $1k car loan..Cute.....
but as another poster stated it's all relative, especially once we consider....all things 'relative'
The TRUTH is one can get a very, very nice 15k car that will still turn heads, some smaller frame folks (not me) can even buy a relatively NEW car with 15k
...that can't be done for 1k
This is especially true with regards to cars, I just bought a luxury brand car that many ppl with much lower incomes would SWEAR they couldn't afford (when really they probably paid 2-3 times more for their 'new' Ford)
Another example is private school for the kids...many 'feel' it's public school of 40k a year snob central but there plenty of well to do folks that will it off at say 15k a year private school and be pretty happy and pleased, where as a 1k per year school is very different animal....again there are minumums and points of diminishing value.
The 100k per year exec and the 240k per year dude most likely live in the same hood and drive pretty much the same ride
_
Not sure what's cute about that but thank you
and you seem to have missed my point. Thanks for trying, though. Have a good one
25k/m is pretty high on 400k income considering the effective tax rate. After housing that's basically breaking even per month. But so what? People can spend their money however you want.
I've been poor and I've been a millionaire and quite frankly: more money, more problems.
The sweet spot is somewhere in between, but largely depends where you live (I live in SF. Living here is like constantly setting money on fire.
I've been poor and I've been a millionaire and quite frankly: more money, more problems.
The sweet spot is somewhere in between, but largely depends where you live (I live in SF. Living here is like constantly setting money on fire.