Does Mortgage Affect Debt Ratio?
I am trying to keep my FICO high , and it seems that by lowering my credit card debt to less than 10% of the avail credit is the way to go , ....... but does my mortgage balance and orig mortgage loan amount factor into that?
www.creditboards.com is a great resource
I have never heard anyone recommending a lower balance than 33% of available credit for credit cards other than it is generally nice not to owe anyone money. I don't think your fico will raise by paying your cards to 10%.
From what I understand this rule of thumb is only for credit cards.
However, you ask about debt to income. I think you are confusing the terms. Debt to income is a term generally used when applying for a mortgage loan. Lenders want to see that the total debt payments per month are only a certain percentage of your income. This is one way that a lender looks at to determine if you are able to pay back the debt.
There are many lenders that go up to 50% DTI and even some lenders that have no-dti requirement programs.
GOOD LUCK
There are going to be a lot of things that keep your credit score high. Yes, paying your bills on time is the big one, but also keeping your balance to high credit ratio down (there is not really a set percentage that it should be - but generally speaking 33% shows you know how to manage your debt), where you live (your zip affects your credit score too ya know), how many inquiries you received in 30 days vs. how many accounts were open, how many accounts you have total (too many accounts makes you look bad). Hope this helps!
mortgages-
If you are stating income then DTI is controllable and anything on the credit report is just a number to react to.
Paying off $7500 in credit card debt can raise a score more than the 17-22 points, it all depends on the limits of the credit card or credit cards.
This would be considered accurate information.