When starting your credit history from scratch, rebuilding from a bad financial period in your life, or if you have long established credit history, I get this question all the time, “How much credit is too much”? Or “How many credit cards should I have to have the best credit?” This is often a difficult question to answer, due to the black box nature of Fair Isaac’s FICO credit scoring model.
Entries Tagged as 'debt ratios'
How Much Credit is Too Much?
November 5th, 2009 · No Comments · Consumer Info, Credit Cards, Credit Reports, Mortgages
Tags: Car Loans·Credit Cards·Credit Score·credit scoring·debt ratios·Fair Isaac·FICO score·Mortgages·number of accounts·Payment History·too much credit·total available credit
Debt-to-Income Ratios (DTIs) for Dummies
March 27th, 2009 · 1 Comment · Consumer Debt, Mortgages, Real Estate
With all the recent government programs available to homeowner’s facing potential foreclosure, understanding debt-to-income ratio is more important than ever, as lenders will be utilizing this parameter to determine your eligibility.
Debt-to-income ratio is a simple formula, calculated based on several key elements of a homeowner’s incoming salary versus outgoing expenses. There are two different types [...]
Tags: debt ratios·debt-to-income ratio·DTI·foreclosure·loan modification programs·Mortgages·reduce house payment·Refinancing
