My credit limit was increased with one of my credit cards....is this a good or bad thing? Doesnt this add into my income to debt ratio? Should I get them to decrease my limit? Or should I get a letter from them stating why they increased it as this could help with my mortgage rate to show although I have had some credit problems in the past I am working to establish "better credit"
No, it has no affect on your debt -income ratio,because your ratio is just your monthly required payments(CC min's and monthly installment) divided by your income, and remember because your income isn't on your CR your debt-income ratio has no bearing on your score, it's only matter when go to apply for credit as part of that process is that they total up all your revolving min's and installment loans payments (think first mortgage is excluded?) divide by your income,for best credit worthiness keep that ratio under 20% .
But the CLI increase is good thing cause it means you can use more of available credit optimally, since you what to keep the balance of individual revoling account under 10% and 30% total on all the accounts combined.
Message Edited by rbbyrbsn on 07-13-200703:47 AM
People say "Only apply for credit you NEED"
I say "apply for credit you have PRATICAL use of"
I don't have AMEX card because I don't want a card that suffers from PMS