Discussion in 'Credit Talk' started by Skyler, Sep 27, 2000.

  1. Skyler

    Skyler Guest

    My debt to income ratio is:26.My credit score is 590. This is all latin to me,can someone please tell me if this is good, fair, or bad. I wa approved for a "credit builders" Chevron card yesterday with $200.00 limit w/$50 annual fee.I have applied for at least 7 unsecured visa cards in the last 2 months and have been turned down. Need to establish a credit profile at the tender age of 38(for real!). Never realized unti several years ago how important credit is in someones life. Never had n e finacial worries because had a sig. other with outstanding credit history and never needed 2 worry 4 n e thing til now 20 years later and w/o him.N e advice?
  2. me

    me Well-Known Member

    You must have some outstanding monthly payments. your debt to income ratio is a ratio of what you pay monthly to what you gross monthly. For example, if you had $100 worth of monthly debt payments, and you grossed $1000 per month, then your debt to income ratio would be 10%. (100/1000 = 0.1 or 10%)

    Your credit score is made up of a few components:
    Your payment history - how have you paid your existing debt obligations? do you have collections or judgements?, etc.
    How much do you owe - for revolving credit this also includes the ratio of your balances to your limits, i.e. Are your balances near the limit.
    Length of history - If your history is short, you are a bigger credit risk because they don't have enough info on which to base their decision
    Recent credit - how much new credit or recent inquiries do you have?
    Types of credit - Do you have all store cards, all revolving lines, all installment loans, etc.

    For more info on the credit score, go to www.fairisaac.com, and choose the "Demystifying FICO" link.
  3. Jim

    Jim Well-Known Member

    Read "me"'s post. It's good info.

    A 590 FICO score is not good. Good scores bgin about 625. You are a candidate for subprime loans (like Chevron). Don't apply for so much credit in a short amount of time.

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