Reply
Valued Contributor
FinStar
Posts: 6,860
Registered: ‎10-21-2012
0

Re: Does "balance chasing" still happen


maiden_girl wrote:

How often does that happen? The way I look at it, the bank gave you the CL for a reason...to use it. Obviously to pay it back but to make use of it.


It is unsecured, borrowed money, plain and simple.  Unless someone's credit or financial picture drastically changes or appears to be an adverse risk to the lender, they are within their rights to CLD, close or demand full payment on that CC.  It is an established T&C contract between both parties when applying.  Obviously, if one is dilligent, pays as agreed and is within the T&C without any issues, then there really shouldn't be much of a concern.

Established Contributor
EaglesFan2006
Posts: 550
Registered: ‎01-31-2008
0

Re: Does "balance chasing" still happen

Thanks for the info. Out of curiosity, what is the CC conpany calculating your DTI from since that's not the same as util?
Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $4500
Frequent Contributor
b_seeker
Posts: 390
Registered: ‎03-24-2013
0

Re: Does "balance chasing" still happen

DTI is all monthly debt payments. CCs, student loans, mortgages, etc.

 

Unsurprisingly, wikipedia actually explains it quite well. http://en.wikipedia.org/wiki/Debt-to-income_ratio



|| Barclaycard Rewards Visa $5500 || AMEX BCE $2000 || Discover IT $3000 || Amazon Rewards Visa $1800 ||
|| Chase Freedom $2700 || CSP $5000 || Chase Marriott Premier $7500 || Sallie Mae MC $3800 ||

FICO Scores: EX 752 (3/13/13) || EQ 782 (10/4/13) || TU 724 (1/18/13)

In the garden as of 10/12/2013
Established Contributor
EaglesFan2006
Posts: 550
Registered: ‎01-31-2008
0

Re: Does "balance chasing" still happen

So would they use overall CC and loan debt or your monthly payments?
Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $4500
Frequent Contributor
b_seeker
Posts: 390
Registered: ‎03-24-2013
0

Re: Does "balance chasing" still happen

Loans are your monthly payments. You DTI would be ridiculus if it was your total loan amount of something like a mortgage. I believe CC debt is calculated by minimum monthly payment.



|| Barclaycard Rewards Visa $5500 || AMEX BCE $2000 || Discover IT $3000 || Amazon Rewards Visa $1800 ||
|| Chase Freedom $2700 || CSP $5000 || Chase Marriott Premier $7500 || Sallie Mae MC $3800 ||

FICO Scores: EX 752 (3/13/13) || EQ 782 (10/4/13) || TU 724 (1/18/13)

In the garden as of 10/12/2013
Senior Contributor
youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
0

Re: Does "balance chasing" still happen

What if student loans are in deferment? Do those count against your dti?
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}