Add up all you credit limits, then add up all that you owe. Subtract them. Example:a card with a $5000 limit, and you owe $1000. you have availble credit of $4000. you are at 20%. you only owe 20%. kev
You add all your balances on all your cards, then add your limits, now take the total you owe and divide that by your total limits and you will get your ratios. Example: you owe a total of 3000 on your balances, your limits total 7000, your ratios would be 43%. Hope this explains it. There is also front and back ratios when applying for mortgages, if you need to figure them out just ask Mom
What if I have very low ratio?? I don't have much balance. What rage of ratio should I keep? I consider to apply for mortgage soon. (next year) Thanks
RE: keep in mind "Bureau- The bureaus can be 30-90 days slower than your payment history. So don't be sad if your balances still show up when you go to apply.
RE: keep in mind "Bureau- Thanks I might have to keep the debt low as much as I can about 3-4 months before I apply. Thanks again.
RE: keep in mind "Bureau- I certainly didn't have my debt paid off, and I had no trouble getting a conventional mortgage. I had and still do have plenty of debt (I am trying to get it down). Also, my lender told me that any revolving account that have a zero balance are still calculated as having a minimum payment of $10. if you had five account all with no balance, it would be calculated as $50 minumum payments (10 X 5).
RE: mortgage? 0% ratio I wouldn't go to 0%... Fair, Isaac says: "In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all." http://www.fairisaac.com/servlet/SiteDriver/Content/1814
RE: keep in mind "Bureau- Also, my lender told me that any revolving account that have a zero balance are still calculated as having a minimum payment of $10. if you had five account all with no balance, it would be calculated as $50 minumum payments (10 X 5). I was wondering that myself, a few lenders told me they wouldn't include zero balances, is this just some lenders requirements? I have 2 accounts with zero sboth retail and I do want to keep one for a nice mix, but don't want the min payments included, trying to keep my ratios down Mom
RE: keep in mind "Bureau- I have no idea. I only went through my credit union, I don't know about other lenders
