How Do You Figure Debt To Credit Ratio?
Purchase your first home and you will understand the importance of a good credit score. Your score affects not only your ability to get a mortgage, but the interest rate that your lender will attach to your mortgage. Controlling your credit score involves many elements, but one that is often misunderstood is your debt to credit ratio. This number is simple to calculate and critical to know when planning for purchases that will require a loan. Calculate your total available consumer credit limit by adding the credit limits on all open credit card accounts, equity lines of credit, revolving credit accounts, and so forth. If you have cards that you are not actively using, but are not sure if the accounts are still open, check your credit report so you can get accurate totals. You can check your credit report free once a year at annualcreditreport.com. When you are sure you have all the card limits available to you, add their limits to any other consumer credit you have available. The sum
