Never had the slightest believe my score could move from 425 to 750 within 14 working days and my collections removed. All thanks to RAY Associates. RAY was a major help too. God Bless RAYMOND for helping me and my family realize the dream of homeownership become a reality. <email removed> was very helpful recently with all of my concerns.
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I agree up to a point. Debt used to acquire income producing assets is good debt. If what you are buying on credit does not produce income, that is bad debt if you carry a balance. Financing the purchase of a rental property is good debt if the rental income is paying off the loan. Using a credit card to buy groceries, a vacation, a restaurant meal, etc. is bad debt but only if you don't pay off the credit card statement balance in full each month. Most would consider the mortgage on a primary residence a liability (because the asset does not generate income), but necessary debt to provide a roof over your head. There is no magic number of loans or credit cards for a good credit score. What matters is your payment history and the length of your credit history and your % credit utilization. I see a lot of posts in this thread that claim there is a limit on the number of loans and credit cards you can have for a high credit score. I have 9 mortgages, and seven credit cards and two HELOCs that are treated as revolving credit lines. My credit score last month was 843 with a credit history of on-time payments for the past 30 years. My credit card utilization rate is under 10% right now only because I have some credit card balances at 0% APR. These balances will all be paid in full by the time the 0% promotional rate period expires. A couple of years ago, one bank I use offered a 0% interest, $0 cash advance fee for a 13-month cash advance. I used the cash advance to borrow $25000, then used the money to buy a few CDs at my credit union. The credit union paid me 2% interest ($500) over the following 12 months. I made minimum payments ($250) to the credit card balance then paid the balance in full when the CDs matured. I just viewed that experience as receiving a $500 cash gift from my bank for being a good customer. The point I am trying to make is credit can be your friend if used responsibily.
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Not exactly correct. If you increase your limit but do increase your spending/credit utilization, then it should have at least a small positive impact on your credit score as your credit utilization ratio (credit used as a percentage of total credit available) is one input taken into account when computing a FICO score. With respect to debt-to-income, simply just increasing your credit limit will not change your DTI. The D in the DTI ratio is based on actual debt you have outstanding, not unused credit. Of course if you increase your limit by $10k and then go out and spend the additional $10k in capacity on your credit credit then it will pressure your DTI higher, but simply increasing your limit will not impact DTI.
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