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Does "balance chasing" still happen

Community Leader
Senior Contributor

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.

Message 11 of 16
Established Contributor

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?
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Message 12 of 16
Frequent Contributor

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



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In the garden as of 10/12/2013
Message 13 of 16
Established Contributor

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: $6600, PayPal $2200
Message 14 of 16
Frequent Contributor

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
Message 15 of 16
Senior Contributor

Re: Does "balance chasing" still happen

What if student loans are in deferment? Do those count against your dti?
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Message 16 of 16