Starbucks Anarchist
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Sat Apr-29-06 07:45 PM
Original message |
Question about good credit |
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I'm currently apartment hunting in NYC and have a dumb question regarding credit ratings:
As far as credit cards go, does it matter how big your balance is as long as you're making payments on time? Also, on one card, my balance is about 20% of the card limit, while the other is at about 60% of the limit, though that one should drop to 20% when I make my next payment.
I've also paid my rent on time every time since I've lived in an apartment, if that helps.
Sorry for the dumb question, but I'm fairly new to this whole thing and don't want to jeopardize my chances of getting a good apartment.
Any help would be appreciated. Thanks.
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Gormy Cuss
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Sat Apr-29-06 08:27 PM
Response to Original message |
1. Paying everything on time is the most important thing. |
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after having a credit history at all, that is. Check here for some good info: http://homebuying.about.com/cs/yourcreditrating/a/credit_score.htm
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Starbucks Anarchist
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Sun Apr-30-06 06:39 AM
Response to Reply #1 |
GOPisEvil
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Sat Apr-29-06 08:30 PM
Response to Original message |
2. For buying a home, debt to income ratio is very important. |
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The lower the better of course.
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Starbucks Anarchist
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Sat Apr-29-06 08:36 PM
Response to Reply #2 |
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My debt is about 10% of my annual income -- that's pretty good, right?
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GOPisEvil
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Sat Apr-29-06 08:42 PM
Response to Reply #3 |
Starbucks Anarchist
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Sat Apr-29-06 11:00 PM
Response to Reply #6 |
15. Although I'm looking for an apartment. |
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But even then, would 10% be good?
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beyurslf
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Sun Apr-30-06 11:48 AM
Response to Reply #3 |
30. Are you including housing in that? DTI includes car payments, student |
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loans, other loans, credit cards, and monthly housing payments or rent.
10% is excellent.
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Starbucks Anarchist
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Sun Apr-30-06 04:52 PM
Response to Reply #30 |
33. No loans or house payments. |
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Though my yearly rent is about 1/3 of my yearly income. I only factored in credit card debt.
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amerikat
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Sat Apr-29-06 08:41 PM
Response to Original message |
4. Get your free credit report online |
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https://www.annualcreditreport.com/cra/indexYou can get a report free from each of the three credit agency's once a year. I just got all three and they were virtually identical. So you might just want to get one now and try one of the others later.
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liontamer
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Sat Apr-29-06 08:56 PM
Response to Reply #4 |
9. did they email it to you |
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or did you have to wait for it in the mail?
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amerikat
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Sat Apr-29-06 08:58 PM
Response to Reply #9 |
10. You get it right on line or you can have it mailed |
liontamer
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Sat Apr-29-06 08:59 PM
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IronLionZion
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Sat Apr-29-06 08:41 PM
Response to Original message |
5. Paying on time is good, but there are a lot of factors |
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I thought I had excellent credit since I pay my balance in full and on time each month. I never carry a balance for any reason ever, but I have only medium credit and they are very reluctant to raise my limit. I may need to get a second card from the very liberal Working Assets.
You can check your credit report for free once a year from annualcreditreport.com and you can get your credit score for about $5.
Don't use freecreditreport.com, it's not really free.
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Starbucks Anarchist
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Sat Apr-29-06 09:03 PM
Response to Reply #5 |
12. My situation's a little different. |
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I always pay on time, but only a portion of the balance -- never paid in full.
Recently, I've been spending less and keeping the balance down, so eventually, it'll be at a much more manageable balance -- will that effect anything?
Also, one of my cards had the limit extended recently.
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Dangerously Amused
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Sat Apr-29-06 08:49 PM
Response to Original message |
7. Your credit is good with me. |
Starbucks Anarchist
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Sat Apr-29-06 08:52 PM
Response to Reply #7 |
8. Can I get a "cash advance"? |
Dangerously Amused
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Sat Apr-29-06 10:18 PM
Response to Reply #8 |
13. Sure. But I'll need something for collateral. |
Starbucks Anarchist
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Sat Apr-29-06 10:26 PM
Response to Reply #13 |
Dangerously Amused
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Sat Apr-29-06 11:47 PM
Response to Reply #14 |
18. Already got one of those. |
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How about your heart?
Or better yet... :evilgrin:
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Starbucks Anarchist
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Sun Apr-30-06 12:42 AM
Response to Reply #18 |
21. My heart is already yours. |
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:loveya:
But everything else will cost you a dollar. :D
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Dangerously Amused
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Sun Apr-30-06 01:12 AM
Response to Reply #21 |
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:loveya:
So everything else is a dollar? You mean like, a dollar for the whole works? If that's the case... SOLD!!! (Even if not, I'll buy it all anyway and still a bargain at that!)
Do you take Paypal? - I can get the money to you within minutes...
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Starbucks Anarchist
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Sun Apr-30-06 01:23 AM
Response to Reply #24 |
25. A dollar for the whole works. |
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Just remember -- no refunds. :D
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Dangerously Amused
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Sun Apr-30-06 01:29 AM
Response to Reply #25 |
26. Refunds?! Are you kidding?? |
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Dude, I plan to clone you and have my own private harem of SAs running all over the place!
:woohoo:
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Starbucks Anarchist
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Sun Apr-30-06 01:38 AM
Response to Reply #26 |
27. You'll get tired of all of me in a day. |
serryjw
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Sat Apr-29-06 11:36 PM
Response to Original message |
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What is your debt to income ratio?
How long on the job?
Keep rent about 30% of net income
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Starbucks Anarchist
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Sat Apr-29-06 11:42 PM
Response to Reply #16 |
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Debt is about 10% of annual income.
One year on my current job, 1 1/2 on the previous (laid off) one, 2 1/2 years total of lifetime work history.
I live in L.A. right now, and my yearly rent comes to about 33% of my annual income. In NYC, even w/ a roommate, the savings would be marginal, I think.
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serryjw
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Sat Apr-29-06 11:58 PM
Response to Reply #17 |
19. Sounds like you will be OK |
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How much are you looking to spend on rent? Do you KNOW your roommate? What happens if you become responsible for ALL the rent if roomamte is a flake?
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Starbucks Anarchist
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Sun Apr-30-06 12:41 AM
Response to Reply #19 |
20. I'd like to spend $700/mo at most. |
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As far as roommates go, I'm trying to get a hold of people I already know who are reliable people, so I'm still working on that.
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serryjw
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Sun Apr-30-06 12:44 AM
Response to Reply #20 |
22. For the APARTMENT? or your half? |
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You will get a dumpster for $700!!!!!!!
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Starbucks Anarchist
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Sun Apr-30-06 12:56 AM
Response to Reply #22 |
23. Sorry, I meant my half. |
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LOL, I currently pay $700 for a studio in L.A.
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serryjw
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Sun Apr-30-06 04:32 PM
Response to Reply #23 |
32. You will find a one bedroom |
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for $1400. Not easy, but doable. You will not find a two unless it is in an unsafe neighborhood
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Starbucks Anarchist
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Sun Apr-30-06 04:53 PM
Response to Reply #32 |
34. Actually, I found a 2-bedroom for $1,350. |
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It's in Astoria, which is safe.
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serryjw
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Sun Apr-30-06 05:06 PM
Response to Reply #34 |
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I thought you wanted to live in the city, sorry
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Starbucks Anarchist
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Sun Apr-30-06 05:09 PM
Response to Reply #35 |
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No way in hell I could afford something there. I also don't want to spend thousands of dollars on a 250 square foot apartment. :D
But if I work in Manhattan (likely), then Astoria is only a 20-minute subway trip from there.
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serryjw
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Sun Apr-30-06 05:24 PM
Response to Reply #36 |
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I left NYC 20 years ago when I was spending $900 for a one bedroom. My friends had a one bedroom in midtown and sub-leased it for $2000/months 5 years ago!
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Starbucks Anarchist
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Sun Apr-30-06 05:31 PM
Response to Reply #37 |
38. $900 for a 1BR sounds reasonable today. |
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:D
BTW, you just hit 6,000 posts. Congrats! :toast:
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serryjw
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Sun Apr-30-06 05:37 PM
Response to Reply #38 |
39. Yeh,,,,,,,,BUT that was 20 years ago! |
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Thanks.I never pay attention to the number of posts
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beyurslf
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Sun Apr-30-06 11:44 AM
Response to Original message |
29. Your balances should be less than 40% of the credit limit |
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for the best result. Paying rent on time is not on your credit report but can help establich credit worthiness as an alternate form of credit--provided you can prove it with canceled checks.
But, paying on time is more important on your credit cards than balances.
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leftyladyfrommo
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Sun Apr-30-06 11:50 AM
Response to Original message |
31. Credit Scores Pick Up on lots of stuff. |
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If you have too man recent inquiries that will lower your score. If you have cards charged to the max that will lower the score. If you have too much credit or too little credit. If you have recent delinquent payments it will lower your score.
It won't know how much you make or how you pay your rent unless your landlord sends the info to the bureau - and most don't.
House payments and auto payments carry the most weight. Do no be late on those. Next come credit cards. Do not open several new accts at a time. It will pick up on that.
Utilites won't show up at all unless there is a collection filed against you.
Collections, foreclosures, delinquent payments (over 30 days), or old unpaid balances are the things that really lower your scores.
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