So Freakin Irritating!!!!

[keebs888]

<rant>
I have a FICO of 650, no bankrupcies, my bills total about $300 a month, I make around 20k a year (not counting my live-in S.O. who makes about the same) and NO ONE will finance me for anything!! I don't get it? I have two paid-off car loans, a paid off student loan, and 2 credit cards with zero balances. I have about $9000 in approximate debt, never had a missed or late payment in nine years of credit history.....What gives? What does it take to have "good credit" these days? Im 27 years old and am stuck with...NOTHING!
</rant>

Sorry guys, just venting


-keith

 

[moddestmike]

Dont feel bad, I attempted to buy my first house, loan officer quoted me at 9% interest. I said nevermind. My FICO is 701 through Equifax and Trans Union. Have a credit card with 50% balance and about $12000 total debt. I used www.truecredit.com to monitor my credit and found several inaccuracies. The agencies had numerous mistakes as far as my name and false accounts so I clearedit up. Also don't apply for to many things. The more inquirries(sp) you have the worse it looks. Looks really bad if you don't get approved. Monitor your credit closely if have not already. Good Luck.

 

[Coiled03]

It's your debt-to-income ratio. Most lenders want that ratio to be less than 36%. In comparison, your DTI ratio is about 46%.

 

[1Day-ACobra]

i think it takes not having a $9000 debt.

 

[sharkall2003]

i think it takes not having a $9000 debt.

Debt may also be calculated in "how much" you CAN spend. If his credit cards have a $9000 limit together then he would be $9000 in debt.

 

[Red99mustangman]

You're 27 and you make 20K a year?.......................

 

[moddestmike]

Just for comparison I make $50k/year.

 

[ebear]

Just for comparison I make $50k/year.

ROFL ROFL ROFL :bowdown: :bowdown:

 

[svtexcelr8]

Debt may also be calculated in "how much" you CAN spend. If his credit cards have a $9000 limit together then he would be $9000 in debt.

Is this true???? I am about to pay off all of my credit cards leaving them empty with about 12-15k worth of available balances. So you are saying that either way you are screwed, whether you have balances or no balances? Also for comparison, I am 25 and make 40-43k a year, but i also live in an area where that is good money as far as cost of living. (good money for my age, no college, etc).

 

[kneedragger]

It's your debt-to-income ratio. Most lenders want that ratio to be less than 36%. In comparison, your DTI ratio is about 46%.

DING DING DING!

 

[kneedragger]

Is this true???? I am about to pay off all of my credit cards leaving them empty with about 12-15k worth of available balances. So you are saying that either way you are screwed, whether you have balances or no balances? Also for comparison, I am 25 and make 40-43k a year, but i also live in an area where that is good money as far as cost of living. (good money for my age, no college, etc).

Not necessarily. If you have high limits and low balances, the lenders tend to look at your FICO totally.

Debt to Income and late payments matter much more.

 

[cobra_4]

Debt may also be calculated in "how much" you CAN spend. If his credit cards have a $9000 limit together then he would be $9000 in debt.

There is no way that is true. My parents have two credit cards with like a twenty thousand dollar limit each and they can get anything financed, perfect credit, etc. What would be the point of having a card if it hurts your credit?

 

[08snake]

This link should be straight-forward on the use of your credit score and backs up what some are saying here....

http://money.howstuffworks.com/credit-score.htm

 

[Tommy98016]

It's your debt-to-income ratio. Most lenders want that ratio to be less than 36%. In comparison, your DTI ratio is about 46%.

true unless you have very good FICO score. When I went for my 1st morgage my score was 790 and they never asked how much I made or anything. It helped that my debt was low at the time. Now about raising your score, never pay late, alway's keep some type of balance, pay atleast the min. Also consolidate as many cards as possible. Stop doing stuff that check's your credit, close cards with no balance and just keep the ones with a low interest rate. This has work for me very well over the years. I was in the 700's when I was 20. Good luck :thumbsup:

 

[moddestmike]

ROFL ROFL ROFL :bowdown: :bowdown:

Seriously man, I'm 22 and bring in about $51500/year, and thats with a low commision year. I'm on pace to do $54000. But that dosent mean shit if I can't get what I want. I usually just save up for what I want. Can't wait to finish school though student loans own me right now.

 

[CobraTone]

I'll give another vote for DTI. You need to either reduce some debt or make more $$, or both.

 

[NiteMareGT]

Well, I can tell you that, although 650 is not the worst, it's also just about the bottom line as far as financing ability goes. Most will not finance you unless you're over 650, Ford Credit being one of them. With a score of 650, and 40-45% DTI, you're a risk, and thats how they see it. Besides, with your initial description of your payment history and what-not, 650 is a bit low. Seems as if you're not "accurately" telling everything. But this is just my opinion, and I could be wrong.

 

[Coiled03]

true unless you have very good FICO score. When I went for my 1st morgage my score was 790 and they never asked how much I made or anything. It helped that my debt was low at the time. Now about raising your score, never pay late, alway's keep some type of balance, pay atleast the min. Also consolidate as many cards as possible. Stop doing stuff that check's your credit, close cards with no balance and just keep the ones with a low interest rate. This has work for me very well over the years. I was in the 700's when I was 20. Good luck :thumbsup:

Even with a great FICO like 790, if you have a DTI ratio of 46% like our bloke here, you're not getting financed. There's a limit to how far they'll go, great score or not. But I do agree that a good score certainly helps things.

 

[keebs888]

Yeah, well, I ran my own business for 7 years and got tired of the sporadic income so I took a job (finally) that is steady. I don't make much, but for where I live (a small 20,000 person COUNTY) in Ga there is absolutely no work here in my field (which is IT by the way). I know it sucks, but I will be making $12.50 an hour in about 2 months and believe me, for the CUSHY job I have in this small town, that is pretty good. I don't have a college degree, either, as I messed around when I was younger and wasted that oppurtunity. As a matter of fact, I was technically unemployed for the last 7 years...even though I worked for myself. I'm a late bloomer. I did manage to pick up a technical school degree in the meantime. I also have A+ cert. and a LONG resume of Networking/IT experience. Without a college degree, though, it means nothing. Enough of that, though.

Why is my Beacon so low? Dunno. To be honest, I didn't really care about it until about 6 months ago. Now I do, and I'm trying to get it higher. The ONLY negative thing on my credit is a $100 that was in collections about 6 years ago when a roomate skipped out on the phone bill and I didn't know about it until I pulled my credit a few months ago. Called the people up, they had no record of it, couldn't pull it up, and couldn't even tell me the name of the collections agency I needed to contact. So I'm screwed on that. Other than that, my credit is perfect. With all of my debt payed off, my score would be about 770, according to the "simulator" on equifax.com. My total debt right now? It's about $9,650; $2800 of which is in my name but my g/f is paying for her car. I put off growing up for a long time....now that I am finally doing it I realize how much easier damn kids have it..........


-keith

 

[FordSVTFan]

Is this true???? I am about to pay off all of my credit cards leaving them empty with about 12-15k worth of available balances. So you are saying that either way you are screwed, whether you have balances or no balances? Also for comparison, I am 25 and make 40-43k a year, but i also live in an area where that is good money as far as cost of living. (good money for my age, no college, etc).

No it isnt accurate. For example if you have a total credit limit between three credit cards of $6000, and you have $3000 on two of them total and one with nothing on it, you have a debt to credit ratio of 50%. If you keep the same three cards and pay off the $3000, your ratio is now 0%. That makes you more attractive to lenders.

That is also why you dont close down credit accounts that have no balance. They improve your debt to credit ratio.

The main poster is not getting credit because he owes too much based on his income of about $9.50/hr.