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Debt-to-income ratio too high :/

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heyitsyeh
Frequent Contributor

Re: Debt-to-income ratio too high :/

I'd piss myself if I had credit at or above my income level Smiley Sad It's so not necessary after a certain point...debt-to-income ratio could only be valid up to a certain level. Other factors such as number of tradelines would play an even more important role.

TU: 777 | EQ: 814 | EX: 764
Last INQ: 3/26/21
AAoA: 4y 7m
Lowest limit: Chase Freedom Visa - $13,000
Highest limit: Discover It - $56,500
Available credit: $200,600 (8 cards)
Message 21 of 22
jamesdwi
Valued Contributor

Re: Debt-to-income ratio too high :/


@heyitsyeh wrote:

I'd piss myself if I had credit at or above my income level Smiley Sad It's so not necessary after a certain point...debt-to-income ratio could only be valid up to a certain level. Other factors such as number of tradelines would play an even more important role.


if you are good with your existing cards it will happen, over time the CL's will grow on thier own, and compound this if you AP for a new card or two every couple of years to get better rewards.  

 

One day a lender will surprise you with a limit that is 150 or 200% your current highest limit just to try and get you to use their card.  When you recieve a 20k CL its not hard to exceed most people's salary. If you have a GE/Sycrony backed card, hit the love button once and they could hit you with 5k CLI, when really you only wanted a $500 CLI. 

 

Decide to take advantage of no interest financing at Home Depot or Lowes, and request a CLI to 10k for new kitchen appliances, after the purchase is paid off a year or more later, are you going to close the card or are you just going to let it sit as available CL on the card it has no AF then have to call and request it again when the water heater or wash machine and dryer need to be replaced?

 

When I first realized that my total CL's were larger than my income it freaked me out. But after a while I got used to it, and realized that I have some self control and wouldn't  max out my cards and  ruin what I spent the last 6 years of my life building. Between me and my DW we are total CL are at 150% of annual reported income. 

 

 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k
Message 22 of 22
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