Hi Ray no i meant D/E that is what i read on this website at the lenders tab at the top of the forums page i beleive it is debt to equity but i dont understand it . what would 0 stand for no debt or that the lender does not look at D/E thank you.[ Edited by mavljc on Date 05/27/2005 ]
I just got turned down for increasing my home equity line because my debt to income ratio was too high. I have almost no debt and great credit. All my credit cards have very high limits. I do not carry a balance. Also my current home equity line has a very high maximum because I have owned my house for 12 years. Wanted to increase my credit line to use in real estate and I got turned down. Too much available credit - even though I am not using it.
Quote:
On 2005-05-27 15:08, bgrossnickle wrote:
Unused credit on a credit card counts as debt.
Brenda
That is NOT correct. Your available credit on credit cards does NOT count toward the debt to income ratios. Lenders will look at minimum required payments reflecting on your credit report to calculate debts - how could that negativelly effect your dti if your balance is zero, and thus the payment is zero????
The only exception to that is a home equity line of credit, where some lenders WILL take into consideration the TOTAL available heloc amount and calculate minimum payment on that, even if you owe zero on it.
It means Debt to Earnings. A ratio lenders like to use to determine your ability to re-pay a loan based on how much money is left after other expenses.
Depends how they are reporting on your credit report I would say. Since you havent used them in long of period of time they may not be reporting as active an in use. You dont need to necesarily carry a balance, but you could use them an PIF or something. I doubt it will move your credit very much though if you are planning on applying soon for the mortgage.
Hi, a couple of months ago I was wondering about the same thing.. I have a Cap1 visa card w/ $300 credit line (paid off) that I have not used in 6 monhts or so. So I decided to use it for a $25 purchase just to get an activity. My score went from 690 to 687 according to ScoreWatch (Equifax)
Do you mean DTI? Debt to income? And no, unused balance on a credit card does not count as equity, although, I assume you mean capital.
[addsig]
Hi Ray no i meant D/E that is what i read on this website at the lenders tab at the top of the forums page i beleive it is debt to equity but i dont understand it . what would 0 stand for no debt or that the lender does not look at D/E thank you.[ Edited by mavljc on Date 05/27/2005 ]
Unused credit on a credit card counts as debt.
I just got turned down for increasing my home equity line because my debt to income ratio was too high. I have almost no debt and great credit. All my credit cards have very high limits. I do not carry a balance. Also my current home equity line has a very high maximum because I have owned my house for 12 years. Wanted to increase my credit line to use in real estate and I got turned down. Too much available credit - even though I am not using it.
Brenda
Brenda, I assume you went to a bank, not a broker right?
[addsig]
Yes I went to a bank - SunTrust. Do other investors not count available debt in your debt to income ratio?
Brenda
Quote:
On 2005-05-27 15:08, bgrossnickle wrote:
Unused credit on a credit card counts as debt.
Brenda
That is NOT correct. Your available credit on credit cards does NOT count toward the debt to income ratios. Lenders will look at minimum required payments reflecting on your credit report to calculate debts - how could that negativelly effect your dti if your balance is zero, and thus the payment is zero????
The only exception to that is a home equity line of credit, where some lenders WILL take into consideration the TOTAL available heloc amount and calculate minimum payment on that, even if you owe zero on it.
Vasiliy
It means Debt to Earnings. A ratio lenders like to use to determine your ability to re-pay a loan based on how much money is left after other expenses.
Depends how they are reporting on your credit report I would say. Since you havent used them in long of period of time they may not be reporting as active an in use. You dont need to necesarily carry a balance, but you could use them an PIF or something. I doubt it will move your credit very much though if you are planning on applying soon for the mortgage.
Hi, a couple of months ago I was wondering about the same thing.. I have a Cap1 visa card w/ $300 credit line (paid off) that I have not used in 6 monhts or so. So I decided to use it for a $25 purchase just to get an activity. My score went from 690 to 687 according to ScoreWatch (Equifax)