I have one question - is it fact to close your credit accounts will effect your credit score in the worse way??? I am one who is caught up in refinance mess. I can only blame myself - I am a habitual reader and this one time I did not and took the agents word what I was signing -interest only!!!! My credit score falls between 615-638 and am unable to refinance to a fix due to the "my debt ratio" is too high. Although my credit is in excellent condition - no late payments for years. I do however have open credit account which I do not use and shredded - should Iclose these accounts/lower the credit availability would either increase my scores???
---------------------
debt to income ratio ..... more than likely is what you are talking of
if your reported debts on your report are more than 45% of your total gross income
then
no matter what your score is you will be turned down for getting close to financial catastrophy the only remedy is to consolidate loans to lower your reported monthy debt obligations
Monday, April 21, 2008
turned down for debt to income ratio
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
Hi,
I am having a similar problem yet I am not sure why. I am a student and I am trying to get my frist student loan. I currently have one installment account on my credit which is 250.00 a month I have no other bills with an income of 2200.00 a month yet on my credit report my debt to income ratio is 96%. Making it impossible for me to get a student loan. If anyone has any advice on how to fix this percentage I would appreciate it.
Thanks,
Tess
i wonder if your not msitaking this for debt to credit limti ratio. If you only have one line of credit and its 250 and you owe 230 then you would have about a 96 debt to credit limit ratio.
If so pay the accounts down to less than 79%. Most credit reports do not know your income so debt o income ratio would not normally be listed. Let me know more
Post a Comment