Quote Originally Posted by iloveboost
Probably some of the worst advice on building credit I've ever heard. No offense, but that's not true.

Debt to income is based on your outstanding loans, credit cards, monthly obligations vs your income. I don't feel like typing up the formula right now, but do a simple Google search.

Credit is not an evil thing if you're responsible with your money.

"Wow, I need new tires but can't afford to pay cash for them all right now. Glad I have a credit card to buy them with and can pay half now, and half next month."

Keeping a balance on all credit cards at 33% is ideal. It shows you're not spending every dollar of credit you've given, but still manage it in a responsible manner.

Credit is not just about credit cards. Creditors like to see multiple forms of credit. Revovling credit accounts (credit cards, personal lines of credit, home equity lines of credit), charge accounts (store cards such as Macys, Bloomingdales, etc), long term payment history (car loans, mortgages). This helps better gauge the type of person you are. Low risk, high risk, etc.

Another thing is length of time you've had open, good standing accounts. How many derogatory accounts you've had (over the limit, late payments, always maxed on cards) and how long it's been since you've had a derogatory mark on your credit.

Another false assumption is that after 7 years, it will fall off your credit report. THIS IS NOT TRUE. It will not fall off until after you've PAID IT FIRST, and then it will fall off after 7 years. Don't think because it's been 7 years it's going to magically disappear and all will be well.

This is a lot of typing for before lunch. I may chime in again later.
Oh no. I agree.. I was just talking about Credit Cards in General.. I know there are other forms of credit.. and like I said I didnt know if that was true, but just what I have heard or from personal experience.. durr, lol

And it is true if you have too much credit you can get denied for more credit.. I used to work in real estate and I do know that if someone has 50 lines of credit that exceed their income by a shitload, they are probably not going to get approved for a home loan or a car, ect..