Credit Cards

[newportguy]

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chnceit wrote:

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bs6054 wrote:

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newportguy wrote:

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I see the OP got her letter and it said to much available credit (which is Debt/Income ratio)  So my statement was correct and not one of those YMMV moments.

OP, congrats on your approval

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Is that really Debt/Income?  At least for mortgage, DTI is (actual amount owed)/income (or perhaps monthly payments/monthly income) not this, which is just total credit line.

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After doing some research DTI and too much available credit is two different things. Thanks BS for clarifying DTI

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Well here's my research!!!

Is Your Debt-To-Income Ratio High?

When lenders evaluate your loan application, they consider available credit as an opportunity for debt. They may figure your debt-to-income ratio as if your credit cards were totally maxed out to gauge you at your riskiest debt level possible.

You can do a similar calculation. If you maxed out your credit cards what would your debt-to-income ratio look like? Would it rise above 37%? If so, you should think about closing some of your unused credit card accounts.

Also here's the link ......  http://credit.about.com/od/usingcreditcards/a/numcreditcards.htm

[chnceit]

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newportguy wrote:

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chnceit wrote:

---

bs6054 wrote:

---

newportguy wrote:

---

I see the OP got her letter and it said to much available credit (which is Debt/Income ratio)  So my statement was correct and not one of those YMMV moments.

OP, congrats on your approval

---

Is that really Debt/Income?  At least for mortgage, DTI is (actual amount owed)/income (or perhaps monthly payments/monthly income) not this, which is just total credit line.

---

After doing some research DTI and too much available credit is two different things. Thanks BS for clarifying DTI

---

Well here's my research!!!

Is Your Debt-To-Income Ratio High?

When lenders evaluate your loan application, they consider available credit as an opportunity for debt. They may figure your debt-to-income ratio as if your credit cards were totally maxed out to gauge you at your riskiest debt level possible.

You can do a similar calculation. If you maxed out your credit cards what would your debt-to-income ratio look like? Would it rise above 37%? If so, you should think about closing some of your unused credit card accounts.

Also here's the link ......  http://credit.about.com/od/usingcreditcards/a/numcreditcards.htm

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You maybe right and I maybe wrong or vise versa. So there a lot of discussion about this particular topic

Too Much Available Credit

This is one of the questions we get all the time at Credit.com. Consumers wonder if they should close some of their credit cards because their total credit limits are so high. They worry that lenders must see that as risky: after all, if they decided to suddenly use all that credit they could really get into trouble.

“No, there’s nothing about having a lot of credit available that can hurt your score,” says Paperno. “In fact, all other things being equal, more revolving credit availability can, for some, mean a lower credit utilization ratio (balances compared to credit limits), which can actually help the credit score.”

Here is the link http://blog.credit.com/2012/06/can-you-have-too-much-credit/

DTI is heavly calculator for car and mortgage loans

[newportguy]

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chnceit wrote:

---

newportguy wrote:

---

chnceit wrote:

---

bs6054 wrote:

---

newportguy wrote:

---

I see the OP got her letter and it said to much available credit (which is Debt/Income ratio)  So my statement was correct and not one of those YMMV moments.

OP, congrats on your approval

---

Is that really Debt/Income?  At least for mortgage, DTI is (actual amount owed)/income (or perhaps monthly payments/monthly income) not this, which is just total credit line.

---

After doing some research DTI and too much available credit is two different things. Thanks BS for clarifying DTI

---

Well here's my research!!!

Is Your Debt-To-Income Ratio High?

When lenders evaluate your loan application, they consider available credit as an opportunity for debt. They may figure your debt-to-income ratio as if your credit cards were totally maxed out to gauge you at your riskiest debt level possible.

You can do a similar calculation. If you maxed out your credit cards what would your debt-to-income ratio look like? Would it rise above 37%? If so, you should think about closing some of your unused credit card accounts.

Also here's the link ......  http://credit.about.com/od/usingcreditcards/a/numcreditcards.htm

---

You maybe right and I maybe wrong or vise versa. So there a lot of discussion about this particular topic

Too Much Available Credit

This is one of the questions we get all the time at Credit.com. Consumers wonder if they should close some of their credit cards because their total credit limits are so high. They worry that lenders must see that as risky: after all, if they decided to suddenly use all that credit they could really get into trouble.

“No, there’s nothing about having a lot of credit available that can hurt your score,” says Paperno. “In fact, all other things being equal, more revolving credit availability can, for some, mean a lower credit utilization ratio (balances compared to credit limits), which can actually help the credit score.”

Here is the link http://blog.credit.com/2012/06/can-you-have-too-much-credit/

DTI is heavly calculator for car and mortgage loans

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I didn't say i agree with the way DTI  works  on CC's and people should close them to keep DTI low , all i was saying is that some lenders may use it on CC apps. Your right DTI is heavly used for car & mortage loans.

[jnnngs_mrcs]

Pen Fed is very conservative.