Quote:
Originally Posted by Ironic Mustache
That's what I meant by this:
I said it kind of confusing, but what I meant was keep your balance below 33% of your limit. If your limit is $10k, try not going over $3k.
Are you sure income has anything to do with FICO? After they ask you what your income is initially, they never check again. DTI counts huge for mortgage loans (which I acknowledge is a type of credit), but I don't think it actually affects your score.
It's true that buying a house without a mortgage doesn't raise your credit score, but why would it? Credit reports are basically a way for lenders to see what your track record for paying bills on time is. Having a lot of money doesn't mean you pay on time. You can raise your score without paying interest by doing what I said above. Use your credit card for most purchases, and pay the balance in full every month. If you get a card with reward points, you get also get free shit (like cruises).
For things like cars and houses, of course you have to pay interest. If you don't want to pay interest, save up and buy with cash. But then that has nothing to do with credit, and therefore won't and shouldn't raise your credit score.
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Yeah, DTI is a part and they appear to guesstimate based on habits. It means jackshit to me. I'm pretty sure at some point credit becomes meaningless for a lot of people. I suspect DJFC will get his loan every time because he can walk away and pay cash.